Which of the following statements is CORRECT?
A) One of the advantages of the corporate form of organization is that it avoids double taxation.
B) It is easier to transfer one's ownership interest in a partnership than in a corporation.
C) One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability.
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

This statement is correct. In a sole proprietorship, the owner is personally liable for all the debts and obligations of the business. This means that if the business cannot pay its debts, the owner's personal assets can be used to satisfy those debts.

Which of the Following Statements Is CORRECT