BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following statements about the corporate form of business organization is true?
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The corporate form has the disadvantage of double taxation relative to a sole proprietorship.
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The corporate form is preferred over the sole proprietorship because a corporation is easier to form and faces less regulation.
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Sole proprietorships are the most common form of business organization because liability is limited to the amount invested in the business by the sole proprietor.
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The corporate form has the advantage of unlimited liability.
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Explanation:
Detailed explanation-1: -Answer and Explanation: The correct option is B, The board of directors sets policy for the corporation and appoints the officers.
Detailed explanation-2: -The primary disadvantage of the corporate form is the double taxation to shareholders of distributed earnings and dividends.
Detailed explanation-3: -Answer and Explanation: Out of the statements pertaining to the definition of a corporation, the incorrect among all statements is O The corporation is the easiest form of business organization to establish.
Detailed explanation-4: -C-corporations face double taxation: the corporation must pay corporate income tax before profits are distributed to shareholders, who must then pay individual income taxes.
There is 1 question to complete.