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. Corporations generally find it relatively difficult to raise large amounts of capital.
B. Less of a corporation's income is generally subjected to taxes than would be true if the firm were a partnership.
C. 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.
D. Corporate investors are exposed to unlimited liability.
E. Corporations generally face relatively few regulations.
Answer: C
You might also like to view...
Davis and Thompson have earnings of $850 each. The social security tax rate is 6% and the Medicare tax rate is1.5%. Assuming that the payroll will be paid on December 29, what will be the employer's total FICA tax for thispayroll period?
a. $102.00 b. $127.50 c. $96.00 d. $25.50
In the unite approach, ____________ are the needs and concerns underlying each position.
a. interests b. stances c. platforms d. none of the above
Answer the following statements true (T) or false (F)
1. Because it is unrealistic for SMART goals to be accomplished overnight, they should have target dates. 2. MBO was developed by Frederick Taylor as part of scientific management. 3. The first step in an MBO program is for the manager to set objectives for her subordinate. 4. The purpose of MBO is to motivate subordinates.
A buyer agrees to purchase "two cars" from an elevator company. All material terms are
contained in a written contract, but "two cars" is not further defined. Which of the following evidence can be admitted if there is a dispute over what "two cars" refers to? A) Oral evidence that the word "car" refers to an elevator, since that is normal in the elevator industry, and that it does not refer to any of the company's automobiles B) Oral evidence that before the signing of the contract the parties intended the contract to be for the purchase of three cars C) Oral evidence that before the signing of the written agreement the elevator company said it would extend its normal one-year warranty (which is stated in the written contract) to two years D) Prior written evidence that the parties intended the contract to be for the purchase of three cars