Which of the Following Statements Best Describes Firm Organization

question 40

Multiple Choice

Which of the following statements best describes firm organization?

• A) It is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required.
• B) 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.
• C) One advantage of forming a corporation is that equity investors are usually exposed to less liability than in a regular partnership.
• D) 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:

Honorius

A Roman Emperor of the West (395-423 AD) known for his reign during the period of the empire's decline in the face of Visigothic invasions and internal strife.

Constantinople

The historical name for the modern city of Istanbul from its founding in 330 AD until the Ottoman conquest in 1453, serving as the capital of the Byzantine Empire.

Milan

A city in Northern Italy, recognized as a leading global fashion and design capital, with a rich history in art and architecture.

Mosaic

Patterns or pictures made by embedding small pieces (tesserae) of stone or glass in cement on surfaces such as walls and floors; also, the technique of making such works.