Corporate stockholders are exposed to unlimited liability

Assignment Help Financial Management

Reference no: EM131585743

Which of the following statements is CORRECT?

Due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of U.S. businesses (in terms of number of businesses) are organized as corporations.

Most businesses (by number and total dollar sales) are organized as proprietorships or partnerships because it is easier to set up and operate one of these forms rather than as a corporation. However, if the business gets very large, it becomes advantageous to convert to a corporation, primarily because corporations have important tax advantages over proprietorships and partnerships.

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.

Large corporations are taxed more favorably than proprietorships.

Corporate stockholders are exposed to unlimited liability.

Reference no: EM131585743

Questions Cloud

What are three personal or career goals : Explain one personal or career goal you have that can be accomplished in the next three to twelve months.

Demonstrate the golden rule when working with clients : How can a counselor with Christian beliefs demonstrate the golden rule when working with clients who have diverse worldviews

Rules govern a typical arbitration proceeding : What general procedures or rules govern a typical arbitration proceeding?

Describe type of trauma : Select one type of trauma and describe the effects it may potentially have on the body, mind, and spirit of an individual.

Corporate stockholders are exposed to unlimited liability : Large corporations are taxed more favorably than proprietorships. Corporate stockholders are exposed to unlimited liability.

Write the function header of the default copy constructor : Write the function header of the default copy constructor for a class called A. Write one default constructor prototype of a class called A

Prove that the graph shown in given figure is non-planar : The girth of a graph is the length of its smallest cycle. Use this to generalize the statements and proofs of Theorems I and II.

What psychological factors contribute to subjective : What psychological factors do you think contribute to subjective well-being when all of the pieces seemingly are in place but one does not have a sense

Statements would most people in business agree : With which of the following statements would most people in business agree?

User Account

All Pages