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.

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Definitions:

Equity Securities

Financial assets representing ownership interest in a company, such as stocks, which provide income through dividends and potential for capital gain.

Home Ownership

Home ownership refers to holding the title to a residential property, giving the owner the right to use, occupy, and modify it as they see fit, subject to legal restrictions.

Rental Rates

The cost of leasing a particular property, often expressed as a price per square foot or a monthly fee.

Inflation

The speed at which the average cost of products and services escalates, reducing purchasing capability.