Which of the Following Statements Is CORRECT

question 30

Multiple Choice

Which of the following statements is CORRECT?

• A) Corporations generally face fewer regulations than proprietorships.
• B) Corporate shareholders are exposed to unlimited liability.
• C) It is usually easier to transfer ownership in a corporation than in a partnership.
• D) Corporate shareholders are exposed to unlimited liability,but this factor is offset by the tax advantages of incorporation.
• E) There is a tax disadvantage to incorporation,and there is no way any corporation can escape this disadvantage,even if it is very small.

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Definitions:

Adults

Individuals who have reached a specific age or maturity level, generally considered to be the age at which they can assume legal rights and responsibilities.

Unemployed

Individuals who are jobless, actively seeking work, and available to take up employment.

Structural Unemployment

Unemployment that results from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

Cyclical Unemployment

A type of unemployment that results from business cycle fluctuations in the economy, typically increasing during recessions and decreasing during expansions.