Which of the Following Is a Key Difference Between a Corporation

question 21

Multiple Choice

Which of the following is a key difference between a corporation and a sole proprietorship?

• A) Establishing a corporation is easier compared to establishing a proprietorship.
• B) Unlike a corporation, a proprietorship is subject to double taxation.
• C) Regulatory requirements are less severe for corporations than sole proprietorships.
• D) Unlike a sole proprietorship, a corporation is subject to limited liability.
• E) Establishing a sole proprietorship has complex legal requirements unlike a corporation.

---

Definitions:

Like Terms

Terms in an algebraic expression that have the same variables raised to the same power, which can be combined or simplified.

Operation Indicated

The process of performing the mathematical operation (such as addition, subtraction, multiplication, or division) as specified by the given problem.

Collect

To gather or accumulate items or amounts, typically for a specific purpose or collection.

Like Terms

In algebra, terms that have the same variable raised to the same power, which can be combined by addition or subtraction.