Multiple Choice
Cheers Inc. operates as a partnership. Now the partners have decided to convert the business into a regular corporation. Which of the following statements is CORRECTσ
A) assuming cheers is profitable, less of its income will be subject to federal income taxes.
B) cheers will now be subject to fewer regulations.
C) cheers' shareholders (the ex-partners) will now be exposed to less liability.
D) cheers' investors will be exposed to less liability, but they will find it more difficult to transfer their ownership.
E) cheers will find it more difficult to raise additional capital.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: There are three primary disadvantages of a
Q4: Debt is a less risky than equity
Q8: If Firm A's business is to obtain
Q13: Two disadvantages of a proprietorship are (1)
Q25: Recently, Hale Corporation announced the sale of
Q32: Which of the following is a primary
Q34: Which of the following statements is CORRECTσ<br>A)
Q35: Which of the following statements is CORRECTσ<br>A)
Q38: Jane Doe, who has substantial personal wealth
Q39: Which of the following statements is CORRECTσ<br>A)