Which of the following statements is false?
A)If a sole proprietorship fails,the creditors can obtain repayment from the personal assets of the single owner.
B)If a partnership fails,the creditors can obtain repayment from the personal assets of the partners.
C)If a corporation fails,the creditors can obtain repayment from the personal assets of the stockholders.
D)A change in ownership among the partners results in the termination of the partnership.
E)Income taxes are not levied against sole proprietorships and partnerships.

Question

Quizplus · Accepted Answer

Creditors cannot obtain repayment from the personal assets of stockholders because a corporation is a separate legal entity. As for the other options, A and B are true, D is false because a change in ownership does not necessarily lead to the termination of a partnership, and E is false because sole proprietorships and partnerships are subject to income taxes.

Which of the Following Statements Is False