Which of the Following Statements Is CORRECT

question 28

Multiple Choice

Which of the following statements is CORRECT?

• 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:

Specific Purpose

A distinct aim or objective for which something is used, created, or exists.

In-Group

A social group to which a person psychologically identifies as being a member, often characterized by a sense of loyalty and exclusivity.

Secondary Group

A large, impersonal social group whose members pursue a specific goal or activity with little emotional connection among themselves.

Yoga Group

A community or assembly of individuals who practice yoga together, often focusing on improving physical health, mental clarity, and spiritual well-being.