In comparing the various business organizational forms discussed in Chapter 19, which of the following statements is false?
A)Only the C corporation is a taxable entity.
B)The original character of business revenues and expenses flows through to the owners for all organizational forms except the C corporation.
C)Only corporate shareholders have limited liability.
D)All owners except proprietors may enter into taxable transactions with their businesses.

Question

Quizplus · Accepted Answer

This statement is false because limited liability is also available to owners of LLCs and S corporations, not just corporate shareholders.

In Comparing the Various Business Organizational Forms Discussed in Chapter