For What Reason Might a Group of People Establishing a Business

question 36

Multiple Choice

For what reason might a group of people establishing a business prefer to set it up as a corporation rather than a partnership?

• A)to have limited liability.
• B)to avoid double taxation.
• C)because of ease of formation.
• D)to avoid complex reporting procedure for government agencies

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Definitions:

Homologous Traits

Features shared by two or more species inherited from a common ancestor.

Convergent Evolution

The phenomenon where unrelated species develop alike characteristics independently due to the need to adjust to comparable environments or ecological niches.

Sexual Selection

A mode of natural selection where individuals with certain inherited characteristics are more likely than others to obtain mates.

Visible Weaponry

The overt display of weapons or items intended for use in aggression or defense, readily apparent in a social or interpersonal context.