Which of the following statements about the corporate form of business organizat

Question

Which of the following statements about the corporate form of business organization is true? (Points : 2)
A) Sole proprietorships are the most common form of business organization because liability is limited to the amount invested in the business by the sole proprietor.
B) The corporate form has the advantage of unlimited liability.
C) The corporate form is preferred over the sole proprietorship because a corporation is easier to form and faces less regulation.
D) The corporate form has the disadvantage of double taxation relative to a sole proprietorship.

Explanation / Answer

ANSWER C.The corporate form has the disadvantage of double taxation relative to a sole proprietorship.

D wrong because corporate has limited liability

A wrong because corporate has strict regulations and is not easier to form

B wrong because in sole proprietorship liability is unlimited

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