Which of the Following Could Explain Why a Business Might

question 45

Multiple Choice

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

• A) Less of a corporation's income is generally subjected to taxes than would be true if the firm were a partnership.
• B) Corporate shareholders escape liability for the firm's debts, but this factor may be offset by the tax disadvantages of the corporate form of organization.
• C) Corporate investors are exposed to limited growth potential.
• D) Corporations generally face relatively few regulations.

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Definitions:

Difference Splitting

A negotiation method where the parties involved agree to divide the disputed amount or difference equally or in a mutually acceptable manner.

Hard-Line Position

A firm and uncompromising stance taken during negotiations or disputes, where little to no concession is offered.

Mortality Rates

The measure of the frequency of occurrence of death in a defined population during a specified interval.

Infectious Diseases

Illnesses caused by pathogens such as bacteria, viruses, fungi, or parasites that can be spread, directly or indirectly, from one person to another.