Which of the following statements is CORRECTσ
A) one of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability.
B) it is generally easier to transfer one's ownership interest in a partnership than in a corporation.
C) one of the advantages of the corporate form of organization is that it avoids double taxation.
D) one of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i.e., "one person, one vote."
E) corporations of all types are subject to the corporate income tax.

Question

Quizplus · Accepted Answer

The statement that one of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability is correct. In a sole proprietorship, the owner is personally responsible for all of the business's debts and obligations. As a result, the proprietor's personal assets may be used to satisfy the business's obligations if it cannot pay its debts.

Which of the Following Statements Is CORRECTσ