Which of the following is a key difference between a corporation and a sole proprietorship?
A) Establishing a corporation is easier compared to establishing a proprietorship.
B) Unlike a corporation, a proprietorship is subject to double taxation.
C) Regulatory requirements are less severe for corporations than sole proprietorships.
D) Unlike a sole proprietorship, a corporation is subject to limited liability.
E) Establishing a sole proprietorship has complex legal requirements unlike a corporation.

Question

Quizplus · Accepted Answer

D) In a sole proprietorship, the owner has unlimited personal liability for the business's financial obligations. In a corporation, the investors' liability is limited to the amount of their investment.

Which of the Following Is a Key Difference Between a Corporation