Relaxant Inc. operates as a partnership. Now the partners have decided to convert the business into a corporation. Which of the following statements is CORRECT?
A. Relaxant's shareholders (the ex-partners) will now be exposed to less liability.
B. The company will probably be subject to fewer regulations and required disclosures.
C. Assuming the firm is profitable, none of its income will be subject to federal income taxes.
D. The firm's investors will be exposed to less liability, but they will find it more difficult to transfer their ownership.
E. The firm will find it more difficult to raise additional capital to support its growth.
Answer: A
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A) every 10 days B) when stock falls to 10 units C) every 10 units D) when stock falls to 9 units E) in batches of 10 items
When goods are received, the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk
Indicate whether the statement is true or false
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a. Decrease in current ratio; no effect on quick ratio b. Increase in current ratio; increase in quick ratio c. No effect on current ratio; no effect on quick ratio d. Decrease in current ratio; decrease in quick ratio
A direct cost is a cost that is:
A. Traceable to multiple cost objects. B. Identifiable as controllable. C. Traceable to the company as a whole. D. Traceable to a single cost object. E. Does not change with the volume of activity.