Which of the following statements is CORRECT?
A. Corporations generally face fewer regulations than proprietorships.
B. Corporate shareholders are exposed to unlimited liability.
C. It is usually easier to transfer ownership in a corporation than in a partnership.
D. Corporate shareholders are exposed to unlimited liability, but this factor is offset by the tax advantages of incorporation.
E. There is a tax disadvantage to incorporation, and there is no way any corporation can escape this disadvantage, even if it is very small.
Answer: C
You might also like to view...
Why is democracy important to union administration and can unions justifiably be called "democratic" institutions? Why or why not?
What will be an ideal response?
Under the Constitution, a treaty is considered:
A) "non-binding and discretionary." B) "unenforceable." C) "law of the land." D) none of the above.
When a company owes employee salaries at the end of the period but fails to make an adjusting entry for that amount owed, which of the following is true?
A. Total stockholders' equity in the balance sheet is overstated. B. Retained earnings in the statement of stockholders' equity is overstated. C. Net income in the income statement is overstated. D. All of the other answers are correct.
A major challenge is ___________ of total cost of the return flow processes
a. the estimation b. the management c. the tracking d. the control