Which of the Following Is TRUE of Sole Proprietorships and Corporations

question 35

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.

---

Definitions:

Arbitration Clause

A contract provision that requires parties to settle disputes through arbitration rather than litigation in courts.

Credible Insurance

Insurance coverage provided by a reputable and financially stable company that can be trusted to pay out claims as stipulated by the policy.

Impartial Third Party

A neutral individual or entity not involved in a dispute who may assist or help resolve issues without bias.

Casualty Insurance Coverage

Insurance that protects an individual or entity against loss or damage to property or individuals, typically covering accidents.