Which of the following statements is CORRECT?
|
|||
|
|||
|
|||
|
|||
|
Answer: Option e is correct
Due to legal considerations related to ownership transfers and
limited liability, which affect the ability to attract capital,
most business (measured by dollar sales) is conducted by
corporations in spite of large corporations' less favorable tax
treatment.
Which of the following statements is CORRECT? a. Due to limited liability, unlimited lives, and ease...
14. Of the following forms of business organization, which have stockholders with limited liability? proprietorships partnerships corporations limited partnerships Soo
QUESTION 12 Which of the following is an advantage of the sole proprietorship? A. Limited liability for its owner B. Double taxation on its owner C. No significant legal requirements for starting the business D. Ability to sell shares of ownership to the investing public QUESTION 7 6.25 points Save Answer Assume that a business has earned Net Income of $200,000 in a given year and that the corporate tax rate is 21%. Individuals are taxed at a rate of...
I need some clarification. Most American businesses are this form of business sole proprietorship Limited liability encourages investors to invest large amounts of money in this form partnership of business It is argued that this form of business contributes the most to increases in the corporation nation's output (GDP) Ownership is distributed among a small number of people. This type of business is partnership subject to unlimited liability. corporation Shareholders are the owners of this form of business. Answer Bank...
Question Completion Status: QUESTION 4 Which of the following statements is CORRECT a. Corporations have unlimited liability. e b. Corporations are taxed more favorably than proprietorships e c. Because of their size, large corporations face fewer regulations than smaller corporations and proprietorships 孝d Bond covenants are designed to protect bondholders and to reduce potential con icts between stockholders and bondholders. e.Reducing the threat of corporate takeover increases the likelihood that managers will act in shareholders interests QUESTION S Which of...
Which, if any, of the following statements is (are) correct? 1 C corporations have unlimited liability. 2 Sole proprietorships offer limited liability. A. 1 only. B. 2 only. C. Both 1 and 2. D. Neither 1 nor 2.
Which of the following statements is CORRECT? a. Relative to sole proprietorships, corporations generally face fewer regulations, and they also find it easier to raise capital. Stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. There is no good reason to expect a firm's stockholders and bondholders to react differently to the types of assets in which it C. invests. Bondholders should...
Which of the following statements is incorrect? Multiple Choice ( Partnerships have unlimited liability ) O Most sole proprietors raise money by borrowing from banks. 0 An advantage of sole proprietorships is that the owner has complete control. Scorporations are considered a hybrid organization.
Which of the following statements is NOT TRUE? Question 3 options: Double taxation of income is a disadvantage of the corporate form of business organization. Shareholders have unlimited liability for the obligations of the corporation which represents an important legal risk that equity investors must consider. Corporations are assumed to have perpetual lives and partnerships have limited lives. Ownership in a corporation is represented by equity shares and this implies that ownership can readily be transferred from one person to...
Which of the following statements is NOT TRUE? Question 13 options: Double taxation of income is a disadvantage of the corporate form of business organization. Ownership in a corporation is represented by equity shares and this implies that ownership can readily be transferred from one person to another. Shareholders have unlimited liability for the obligations of the corporation which represents an important legal risk that equity investors must consider. Corporations are assumed to have perpetual lives and partnerships have limited...
Which of the following statements is NOT TRUE? Question 38 options: Corporations are assumed to have perpetual lives and partnerships have limited lives. Shareholders have unlimited liability for the obligations of the corporation which represents an important legal risk that equity investors must consider. Double taxation of income is a disadvantage of the corporate form of business organization. Ownership in a corporation is represented by equity shares and this implies that ownership can readily be transferred from one person to...