Would It Be Reasonable for a Successful Manufacturing Firm,started as a Sole

question 59

Multiple Choice

Would it be reasonable for a successful manufacturing firm,started as a sole proprietorship or partnership to eventually adopt the corporate organizational form?

• A) No, the tax burden (double taxation) is too costly
• B) No, the reporting burdens are too costly
• C) No, once started as a sole proper ship or partnership, firms are not allowed to change their form
• D) Yes, the competitive disadvantages to sole proprietorship or partnership are too burdensome

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Definitions:

Assets

Economic resources owned or controlled by a business or an individual which are expected to produce future benefit.