Q1. Which of the following organizational structures usually has the lowest cost of raising external capital? A) Corporations. B) Partnerships and proprietorship C) Proprietorships.
Q2. Which of the following organizational structures is (are) subject to double taxation? A) Proprietorships. B) Corporations. C) Partnerships and proprietorships.
Q3. Which of the following types of business firms exposes its owners to the greatest legal liability in the U.S. and which type of firm is most likely to face a principal-agent conflict, respectively?
A) Proprietorship; corporation. B) Proprietorship; partnership. C) Corporation; corporation. |