Choose the true statement: Compared to most other countries, including almost all Civil Law countries, China's franchising laws are in effect the opposite of the flexible laws for agency relationships and partnerships found in the United States. Corporate profits are only taxed if they are distributed to the shareholders. If a person starts a company that will allow for both fun and hopefully profits while engaging in a hobby, and the person has nine "remote" investors in that company, the person and up the nine "remote" investors could form a sole proprietorship. If a shareholder loses a derivative action against a corporation, that shareholder must sell his/her shares in the corporation. Shareholders rarely, if ever, have any significant managerial powers in their roles as shareholders