Which of the Following Could Explain Why a Business Might

question 29

Multiple Choice

Which of the following could explain why a business might choose to operate as a corporation rather than as a proprietorship or a partnership?

• A) Corporations generally face fewer regulations.
• B) Less of a corporation's income is generally subject to federal taxes.
• C) Corporate shareholders are exposed to unlimited liability,but this factor is offset by the tax advantages of incorporation.
• D) Corporate investors are exposed to unlimited liability.
• E) Corporations generally find it easier to raise large amounts of capital.

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Definitions:

Independent Variable

In an experiment or clinical trial, the variable that represents the presumed cause of an effect or outcome.

Low Carbohydrate Diet

A nutritional strategy that emphasizes reduced carbohydrate intake, often to promote weight loss or control blood sugar levels.

Chronic Diseases

Long-term medical conditions that are generally progressive and affect an individual's overall health and quality of life, necessitating ongoing management and care.

Prevalence

The proportion of a population found to have a condition at a specific time, often used in epidemiological studies.