Which of the following is a difference between a corporation and a sole proprietorship?
A) The owner of a corporation has unlimited liability, while the owner of a sole proprietorship has limited liability.
B) The owner of a corporation faces difficulty in raising startup money, while the owner of a sole proprietorship does not.
C) A corporation makes zero economic profit in the long run, while a sole proprietorship makes positive economic profits in the long run.
D) Corporate income is taxed twice, while income from a sole proprietorship is taxed only once.
E) A corporation faces vulnerability in the case of the death of an owner, while a sole proprietorship does not.
Correct Answer:
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