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 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

One of the disadvantages of a proprietorship is unlimited liability, meaning the owner is personally responsible for all debts and obligations of the business. The other statements are incorrect. The corporate form of organization may result in double taxation, transferring ownership interest in a partnership is often more difficult than in a corporation, not all corporations have equal voting rights and some corporations are exempt from corporate income tax.

Which of the Following Statements Is CORRECT