Which of the following statements is CORRECT? a. One of the advantages of a corp

Question

Which of the following statements is CORRECT?

a. One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i.e., "one person, one vote." b. One of the advantages of the corporate form of organization is that it avoids double taxation. c. One of the disadvantages of a proprietorship is that the proprietor is exposed to unlimited liability. d. Corporations of all types are subject to the corporate income tax. e. It is easier to transfer one's ownership interest in a partnership than in a corporation.

Explanation / Answer

correct option is "C" - One of the disadvantages of a proprietorship is that the proprietor is exposed to unlimited liability.

This is so because a proprietor alone carries on a business ,assumes all risk and takes all profits .

Therefore his liability is also unlimited .

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