Question 2 1.5 pts Which of the following statements is incorrect concerning the

Question

Question 2 1.5 pts Which of the following statements is incorrect concerning the various forms of business organizations? O a. A corporation is a separated (from its owners) legal entity that has unlimited life. b. Unlike owners of corporations, general/master partner(s) as well as owners of sole proprietorships bear the risk of unlimited liabilities. O c. In general, it is more challenging for a sole proprietorship to raise a large amount of external capital, say, billions of dollars, than a public corporation d. A corporation is subjected to ethical/social responsibilities while other forms of organizations are exempted from such responsibilities due to their limited resources

Explanation / Answer

d. Corporation and other forms of organization are subjected to social/Ethical responsibilities as they all are using the resources provided by the environment on which the business is operating.

First 3 options are right as a corporation has separate entity from the owners, unlimited life and limited liability and raising fund from public is even easier as the corporation got separate legal status and their fund is managed better in the hands of a corporation than a proprietorship/Partnership

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