Which of the following statements is correct? Select one: O a. One disadvantage
ID: 2521003 • Letter: W
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.