Which of the following statements is CORRECT?
A) One of the disadvantages of incorporating your business is that you could become subject to the firm's liabilities in the event of bankruptcy.
B) Sole proprietorships are subject to more regulations than corporations.
C) In any partnership, every partner has the same rights, privileges, and liability exposure as every other partner.
D) Corporations of all types are subject to the corporate income tax.
E) Sole proprietorships and partnerships generally have a tax advantage over corporations.

Question

Quizplus · Accepted Answer

Sole proprietorships and partnerships are typically taxed only once on the owner's personal income tax return, whereas corporations face double taxation (corporate income tax and personal income tax on dividends).

Which of the Following Statements Is CORRECT