FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com | Page 30

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Which of the following statements is CORRECT?
a. One of the disadvantages of a sole proprietorship is that the proprietor
is exposed to unlimited liability.
b. It is generally easier to transfer one’s ownership interest in a
partnership than in a corporation.
c. One of the advantages of the corporate form of organization is that it
avoids double taxation.
d. One of the advantages of a corporation from a social standpoint is that
every stockholder has equal voting rights, i.e., “one person, one vote.”
e. Corporations of all types are subject to the corporate income tax.
2. Which of the following would be most likely to lead to higher interest
rates on all debt securities in the economy?
a. Households start saving a larger percentage of their income.
b. The economy moves from a boom to a recession.
c. The level of inflation begins to decline.