It Is Generally Less Expensive to Form a Corporation Than

question 59

True/False

It is generally less expensive to form a corporation than a proprietorship because,with a proprietorship,extensive legal documents are required.

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Definitions:

Endowment Fund

A fund where the principal amount is kept intact while the investment income is used for specific purposes, often found in non-profits and educational institutions.

Principal Amount

The initial size of a loan or bond or the amount deposited, excluding any interest or earnings.

Scholarships

Financial aid awarded to students to help pay for education expenses, often based on academic achievement or other criteria.

Restricted Fund Method

An accounting practice used for reporting resources that have been restricted by donors or grantors.