Which of the Following Statements Is CORRECTσ

question 30

Multiple Choice

Which of the following statements is CORRECTσ

• 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:

Salvage Value

The envisaged monetary value of an asset when sold after its lifespan of utility.

Tax Rate

The percentage at which an individual or corporation is taxed.

Straight-Line Depreciation

A method of depreciating an asset at a fixed rate over its useful life, spreading the cost evenly across the period.

Useful Life

The estimated duration of time that an asset is expected to be productive for the purpose it was acquired for.