Which of the Following Statements Is Most Correct

question 3

Multiple Choice

Which of the following statements is most correct?

• A)An advantage to incorporation is that it allows for less regulation of the business.
• B)An advantage of a corporation is that it is subject to double taxation.
• C)Unlike a partnership,a disadvantage of a corporation is that it has limited liability.
• D)Corporations face more regulations when compared to partnerships.

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Definitions:

Significant Restrictions

Limitations or constraints that significantly impact the use, transfer, or disposal of assets or resources.

AASB 3

An accounting standard provided by the Australian Accounting Standards Board relating to Business Combinations, guiding the accounting treatment for all phases of the acquisition process.

IFRS 3

An International Financial Reporting Standard that deals with business combinations, requiring acquired assets and liabilities to be measured at their fair values at acquisition date.

Acquisition Method

An accounting technique used to consolidate the financial statements of two companies when one company acquires control of another.