Which of the Following Statements Is CORRECTσ

question 13

Multiple Choice

Which of the following statements is CORRECTσ

• A) it is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required.
• B) corporations face fewer regulations than sole proprietorships.
• C) one disadvantage of operating a business as a sole proprietorship is that the firm is subject to double taxation, at both the firm level and the owner level.
• D) one advantage of forming a corporation is that equity investors are usually exposed to less liability than in a regular partnership.
• E) if a regular partnership goes bankrupt, each partner is exposed to liabilities only up to the amount of his or her investment in the business.

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Definitions:

Solicited Proposal

A solicited proposal is a request for proposals submitted in response to an organization's call for proposals, indicating a need for services or products.

Request for Proposal

A document issued by an organization to solicit proposals from suppliers and contractors.

Wellness Program

An initiative designed by organizations to promote healthy lifestyles among their employees, often including activities or resources related to health and fitness.

Employee Absenteeism

The frequent absence of an employee from work, which may affect productivity and operations.