Which of the Following Is an Advantage of Incorporation

question 141

Multiple Choice

Which of the following is an advantage of incorporation?

• A)Shareholders owe a duty to the corporation.
• B)Shareholders are liable for debts of the corporation.
• C)Shares are easily transferred.
• D)Shareholders can veto the decisions of directors.
• E)There are no tax advantages as compared to a sole proprietorship.

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Definitions:

Money Center Bank

Large financial institutions that rely less on traditional bank deposits for funding and more on wholesale funding markets.

Retail Bank

A bank that provides financial services to individual consumers rather than businesses, offering deposits, loans, and other services.

Commercial Bank

A commercial bank is a financial institution that offers various services, such as accepting deposits, providing business loans, and offering basic investment products to individuals and businesses.