Which of the following statements is CORRECT?
A. One advantage of forming a corporation is that equity investors are usually exposed to less liability than they would be in a partnership.
B. Corporations face fewer regulations than proprietorships.
C. One disadvantage of operating a business as a proprietor is that the firm is subject to double taxation, because taxes are levied at both the firm level and the owner level.
D. It is generally less expensive to form a corporation than a proprietorship because, with a proprietorship, extensive legal documents are required.
E. If a partnership goes bankrupt, each partner is exposed to liabilities only up to the amount of his or her investment in the business.
Answer: A
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The bankruptcy courts are part of the federal court system
Indicate whether the statement is true or false
Which of the following words correctly illustrates the plural form of the proper noun "Sally"?
A. Sallys B. Sallies C. Sally's D. Sallie's
Talia is about to purchase a Baskin-Robbins franchise because she loves ice cream. How much work should Talia expect to have to do to make the franchise successful?
A. Most franchisees simply hire managers to run the operations, so she will have to work very little. B. She will need to work about twenty hours a week to make sure things are running smoothly. C. She should expect to work very hard, putting in long hours about six days a week. D. She will have to work a standard forty-hour work week, just as she did at her previous corporate job. E. Her franchising agreement likely requires her to be at the store whenever it is open.