Compared to Partnerships and Sole Proprietorships, a Major Advantage of the Conventional

question 254

Multiple Choice

Compared to partnerships and sole proprietorships, a major advantage of the conventional (C) corporation as a form of business ownership is that it

• A) has the ability to raise more money.
• B) is easier and less expensive to form.
• C) qualifies for simplified tax treatment.
• D) creates unlimited liability for its owners.

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Definitions:

Partnership's Profits

Partnership's profits refer to the share of income generated by a business partnership that is distributed among its partners according to the terms of their agreement.

Personal Income Tax

A tax levied on the income of individuals, which varies according to the income level and financial situation of the taxpayer.

Withdrawing

The act of removing or pulling back from a commitment, activity, bank account, or legal proceeding.

Income

The monetary payment received for the provision of goods, services, or labor from one individual or entity to another.