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T or F: it is important to individualize A1C goals

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Bethany is planning to start a business. Why might she choose to operate her business as a corporation rather than as a proprietorship or a partnership?a.Corporate investors are exposed to unlimited liability.b.Taxes are not a major drawback to corporations because corporate earnings are only taxed once.c.Corporate shareholders are exposed to unlimited liability, but this factor is offset by the tax advantages of incorporation.d.Corporations generally face fewer regulations.e.Corporations generally find it easier to raise large amounts of capital.

Which of the following factors tend to encourage management to act in their stockholders' best interests?a.A reasonable compensation package sufficient to attract and retain able managersb.Direct intervention by shareholdersc.Firing managers who do not perform welld.Threat of a hostile takeovere.All of these factors encourage management to act in shareholders' best interests

Which of the following statements about business organizations is CORRECT?a.It is generally easier to transfer one's ownership interest in a partnership than in a corporation.b.A significant risk in 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.c.If a corporation elects to be taxed as a P corporation, then both it and its stockholders can avoid all federal taxes. This provision was put into the Federal Tax Code in order to encourage the formation of small businesses.d.It's unlikely for a firm to be organized as a corporation when it requires a lot of capital.e.Tax advantages of incorporation offset the corporate shareholders' exposure to unlimited liability.

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