Which of the following statements is CORRECT? a. One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. b. Sole proprietorships are subject to more regulations than corporations. c. In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner. d. Sole proprietorships and partnerships generally have a tax advantage over many corporations. e. Corporations of all types are subject to the corporate income tax.
Which of the following statements is CORRECT? a. One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. b. Sole proprietorships are subject to more regulations than corporations. c. In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner. d. Sole proprietorships and partnerships generally have a tax advantage over many corporations. e. Corporations of all types are subject to the corporate income tax.
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 2DQ: LO.1 Sylvia and Trang want to enter into business together and are unsure what type of entity to...
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Question # 1:
Which of the following statements is CORRECT?
|
a. |
One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. |
|
b. |
Sole proprietorships are subject to more regulations than corporations. |
|
c. |
In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner. |
|
d. |
Sole proprietorships and partnerships generally have a tax advantage over many corporations. |
|
e. |
Corporations of all types are subject to the corporate income tax. |
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