Question 5 of 25 oooooooooooooo Which of the following statements is CORRECT? a. Corporate stockholders are exposed to unlimited liability b. 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. O c. 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. d. Large corporations are taxed more favorably than proprietorships. e. 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. Question 8 of 25 Which of the following statements is CORRECT? O a. One disadvantage of forming a corporation is that it is more difficult for the firm's investors to transfer their ownership interests. O b. One advantage of forming a corporation is that it subjects the firm's investors to fewer taxes. O c. One drawback of forming a corporation is that it subjects the firm's investors to increased personal liabilities. O d. One drawback of forming a corporation is that it generally subjects the firm to additional regulations. O e. One drawback of forming a corporation is that it makes it more difficult for the firm to raise capital