Which of the Following Is True of Sole Proprietorships and Corporations

question 119

Multiple Choice

Which of the following is true of sole proprietorships and corporations?

• A) It is difficult to transfer ownership of corporations compared to that of sole proprietorships.
• B) Income from both forms of organizations are taxed only at the corporate level.
• C) Both sole proprietorships and corporations are equally scrutinized and regulated by government bodies.
• D) In sole proprietorships, owners have unlimited liability; whereas, in corporations, owners have limited liability.

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Definitions:

Hydrogen Sulfide

A toxic, flammable gas with the formula H2S, known for its foul odor of rotten eggs and used in the manufacture of chemicals.

Lewis Structure

A diagram that represents the bonds between atoms and the lone pairs of electrons in a compound.

Water

A chemical compound, H2O, essential for all known forms of life, characterized by its liquid state at room temperature and its ability to dissolve many substances.

Helium

Helium is a chemical element with symbol He and atomic number 2, known as the second lightest and second most abundant element in the observable universe, primarily used in cryogenics and as an inert gas shield in arc welding.