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Which of the following is NOT a reason why corporations can generally make higher profits?

A. Corporations can raise more financial capital

B. Corporations tend to be larger

C. Corporations are often able to attract highly qualified employees

D. Corporations pay less in taxes

A. Option A

B. Option C

C. Option D

D. Option B

User Virushan
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1 Answer

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Final answer:

Option D, 'Corporations pay less in taxes,' is NOT a reason why corporations can generally make higher profits, as corporate tax obligations can be substantial and vary widely.

Step-by-step explanation:

The reason why corporations can generally make higher profits that is NOT correct is D. Corporations pay less in taxes. This statement is not inherently true as corporate tax rates vary depending on a variety of factors, including the country in which the corporation operates and the specific tax laws applicable to corporations in that jurisdiction. In fact, corporations often face significant tax burdens. On the other hand, corporations are indeed able to attract financial capital more easily because of their ability to issue stock and bonds, tend to be slightly larger in size which can lead to economies of scale, and are easier to attract top talent to their organizations since they can offer competitive salaries and benefits.

User Waspinator
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