Which of the following is the most likely reason a single owner would establish a business as a corporation rather than as a sole proprietorship?
A)Ease of setting up the business
B)Limited liability
C)Having to follow GAAP when preparing financial statements.
D)Double taxation

Question

Quizplus · Accepted Answer

The most likely reason a single owner would establish a business as a corporation rather than as a sole proprietorship is for limited liability protection. As a sole proprietorship, the owner's personal assets are not separate from the business assets and can be at risk if the business incurs debts or legal liabilities. In a corporation, the owner's liability is limited to the amount of their investment in the business.

Which of the Following Is the Most Likely Reason a Single