Compared to partnerships and sole proprietorships, a major advantage of the C (conventional) corporation as a form of business ownership is that it:
A) has the ability to raise more money.
B) is easier and less expensive to form.
C) qualifies for simplified tax treatment.
D) creates unlimited liability for its owners.

Question

Quizplus · Accepted Answer

C corporations have the ability to raise more money by selling stocks and issuing bonds, which is not possible for partnerships and sole proprietorships. However, they do have more complex tax rules and the potential for double taxation on profits.

Compared to Partnerships and Sole Proprietorships, a Major Advantage of the C