An Important Distinction Between Corporate and Unincorporated Businesses Is That

question 57

Multiple Choice

An important distinction between corporate and unincorporated businesses is that

• A) corporations are able to borrow money; unincorporated businesses must be financed from internal sources.
• B) corporation owners have unlimited liability; unincorporated businesses are limited in their liability.
• C) income earned by corporations may be subject to double taxation; income of unincorporated businesses is taxed only once.
• D) corporations have a limited life; unincorporated businesses have an unlimited life.
• E) it is impossible for the income of unincorporated businesses to be taxed at a higher rate than the income of corporations.

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