35.Which of the following statements is CORRECT?a.One of the advantages of the corporate form of organization is that it avoids double taxation.b.It is easier to transfer one’s ownership interest in a partnership than in a corporation.c.One of the disadvantages of a proprietorship is that the proprietor is exposed to unlimitedliability.d.One of the advantages of a corporation from a social standpoint is that every stockholder hasequal voting rights, i.e., “one person, one vote.”e.Corporations of all types are subject to the corporate income tax. Show
Page 6Conceptual M/CChapter 1:Overview You can buy the complete file from (1-3) Forms of organizationF M 36.Which of the following statements is CORRECT? 37.Relaxant Inc. operates as a partnership.Now the partners have decided to convert the businessinto a corporation.Which of the following statements is CORRECT?  38.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 taxadvantages of incorporation.e.There is a tax disadvantage to incorporation, and there is no way any corporation canescape this disadvantage, even if it is very small. 1 1.) Sole proprietorship and partnership generally have a tax advantage over corporations. Answer: True 2.) Which of the following is correct? A) One of the advantages of the corporate form of organization is that it avoids double taxation, B) It is easier to transfer one's ownership interest in a partnership than in a corporation. C) One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. D) One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights "one person one vote" Answer: C) One of the disadvantages of a proprietor is exposed to unlimited liability. 3.) Which of the following 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 sole proprietorship's. C) One disadvantage of operating a business as a sole 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) One advantage of forming a corporation is that equity investors are usually exposed to less liability than they would be in a partnership. 4.) It is usually easier to transfer ownership in a corporation than in a partnership. A) True B) FAalse Answer: A) True 5.) 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 face fewer regulations. B) Less of a corporation's income is generally subject to federal taxes. C) Corporate shareholders are exposed to unlimited liability, but this factor is offset by the tax advantage of incorporation. D) Corporate investors are exposed to unlimited liability. E) Corporations generally find it easier to raise large amounts of capital. Answer: E) Corporations generally find it easier to raise large amounts of capital. 6.) The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to? A) Maximize its expected total corporate income. B) Maximize its expected EPS C) Minimize the chance of losses D) Maximize the stock price per share over the long run, which is the stock's intrinsic value. E) Maximize the stock price on a specific target date. Answer: D) Maximize the stock price per share over the long run, which is the stock's intrinsic value. 7.) Which of the following statements are correct? A) If a corporation elects to be taxed as a s corporation, then both it and its stockholders can avoid taxes. This provision was put into the federal Tax Code in order to encourage the formation of a small business. B) The more capital a firm is likely to require, the smaller the probability that it will be organized as a corporation. C) It is generally easier to transfer one's ownership interest in a partnership than in a corporation. D) One danger of starting a proprietorship is that you may be exposed to personal liability if the business goes bankrupt. This problem would be avoided if you formed a corporation to operate the business. 1 Which one of the following is one of the advantages of the corporate form of organization?Advantages of a corporation include personal liability protection, business security and continuity, and easier access to capital. Disadvantages of a corporation include it being time-consuming and subject to double taxation, as well as having rigid formalities and protocols to follow.
Which of the following statements is correct One of the advantages of corporate form?Answer and Explanation: The correct option is A: One advantage of the corporate form of organization is that the liability of the owners of the firm is limited to their investment in the firm.
Which one of the following is an advantage of the corporate form of entity quizlet?An advantage of the corporate form of organization is that corporations are generally less highly regulated than proprietorships and partnerships.
What's one advantage to the corporate form of ownership?The corporate form of organization offers several advantages, including limited liability for shareholders, greater access to financial resources, specialized management, and continuity.
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Which of the following statements is correct One of the advantages of the corporate form of organization is that it avoids double taxation?
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