Which of the Following Statements Is CORRECT

question 42

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:

Deception

The act of misleading or falsely representing information to alter perceptions or actions of others.

Ethical Principles

The guiding concepts that inform moral judgment and conduct, determining what is right or wrong in various scenarios.

Psychological Research

The scientific study of the mind and behavior through controlled experiments, observation, and analysis.

Psychological Research

The scientific study of the mind and behavior, utilizing systematic methods and empirical evidence to answer questions about psychological functions and processes.