Which of the following could explain why a business might choose to operate as a

ID: 2729457 • Letter: W

Question

Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?

A. Corporate shareholders are exposed to reduced liability, but this factor is offset by the tax advantages of incorporation.

B. Less of a corporation’s income is generally subject to taxes.

C. Corporate investors are exposed to unlimited liability.

D. Corporations generally find it easier to raise capital.

E. Corporations generally face fewer regulations.

D. Corporations generally find it easier to raise capital

Because of limited liabiliy it is easier to raise capiatl

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