Which of the Following Statements Is CORRECT

question 36

Multiple Choice

Which of the following statements is CORRECT?

• A) One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt.
• B) Sole proprietorships are subject to more regulations than corporations.
• C) In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner.
• D) Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones.
• E) Corporations of all types are subject to the corporate income tax.

---

Definitions:

Informative Letter

A written communication designed to convey detailed information about a specific topic or issue.

Legal Matter

Refers to any situation or issue that involves legal principles or laws that need to be resolved.

Attorney at Law

A person licensed to practice law in a particular jurisdiction, offering legal advice, representation, and other services.

J.D.

Juris Doctor, a graduate-level professional degree in law.