Which of the following is TRUE of sole proprietorships and corporations?

Question

Quizplus · Accepted Answer

Option A is incorrect because it is easier to transfer ownership of corporations compared to sole proprietorships, as corporations issue shares of stock that can be bought and sold easily. 
Option B is also incorrect because income from sole proprietorships is taxed at the individual level, whereas income from corporations is taxed at both the corporate and individual level. 
Option C is incorrect because corporations are more heavily scrutinized and regulated by government bodies than sole proprietorships. 
Option D is true - in sole proprietorships, the owner is personally liable for any debts or legal issues, whereas in corporations, the liability is limited to the amount of investment made by each shareholder.

Which of the Following Is TRUE of Sole Proprietorships and Corporations