Which of the following statements generally cannot be correct for an investor who faces unlimited liability on an investment?

Question

Quizplus · Accepted Answer

Unlimited liability typically applies to sole proprietorships and general partnerships, not to investors who own stock in a corporation. The investor may have partners or not, and is not necessarily responsible for managing the firm. However, unlimited liability would make double taxation impossible, as the investor would pay taxes on any profits personally rather than through the company.

Which of the Following Statements Generally Cannot Be Correct for an Investor