Which of the following statements is correct? Select one: O a. One disadvantage

Question

Which of the following statements is correct? Select one: O a. One disadvantage of a sole proprietorship is that the proprietor is exposed to unlimited liability b. One advantage of the corporate form of organization O c. Corporations of all types are subject to the corporate O d. One advantage of a corporation is that every is that it avoids double taxation. income tax stockholder has equal voting rights, i.e. one person, one vote. O e. It is easier to transfer ownership interest in a partnership than in a corporation.

Explanation / Answer

a. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability.

A sole proprietorship is a type of enterprise that is owned and run by one natural person and in which there is no legal distinction between the owner and the business entity.

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