Which of the Following Is an Advantage of Incorporation

question 56

Multiple Choice

Which of the following is an advantage of incorporation?

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

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Definitions:

Leaner Channels

Communication methods that involve fewer cues and less information richness, often used in more formal or straightforward exchanges.

Routine Messages

Standardized communications that convey regular, operational information within or between organizations, typically involving procedural or administrative details.

Employee Restraint

The practice of limiting or controlling the actions or freedom of employees, often to comply with organizational policies or legal requirements.

Leadership Behaviors

Actions and decisions undertaken by a leader, influencing how they manage and interact with their team.