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, epartner has the same rights, privileges, and liability exposure as eother 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, while corporations face double taxation on both corporate profits and dividends.

Which of the Following Statements Is CORRECT