Which of the Following Could Explain Why a Business Might

question 5

Multiple Choice

Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnershipσ

• A) corporations generally find it relatively difficult to raise large amounts of capital.
• B) less of a corporation's income is generally subjected to taxes than would be true if the firm were a partnership.
• C) corporate shareholders escape liability for the firm's debts, but this factor may be offset by the tax disadvantages of the corporate form of organization.
• D) corporate investors are exposed to unlimited liability.
• E) corporations generally face relatively few regulations.

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Definitions:

Emotional Role

The expected emotional behavior and expression that an individual adopts in a specific social or work role.

Head Start Programs

Federally funded programs in the United States aimed at promoting school readiness for children from low-income families through education, health, and social services.

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Quantitative measures assessing a person's cognitive abilities in comparison to a population.

Genetic Differences

Variations in the genes among individuals within a population, contributing to unique physical or behavioral traits.