A factor which distinguishes the corporate form of organization from a sole proprietorship or partnership is that a
A) corporation is organized for the purpose of making a profit.
B) corporation is subject to numerous federal and provincial government regulations.
C) corporation is an accounting economic entity.
D) corporation's temporary accounts are closed at the end of the accounting period.

Question

Quizplus · Accepted Answer

Corporations are distinct from sole proprietorships and partnerships in that they face a higher level of government regulations at both federal and provincial levels. This includes regulations regarding their formation, operation, and reporting requirements.

A Factor Which Distinguishes the Corporate Form of Organization from a Sole