2

Which of the following could explain why a business might choose to operate as a corporation rather than as a proprietorship or a partnership?

A - Corporate investors are exposed to unlimited liability.

B - Less of a corporation's income is generally subject to federal taxes.

C- Corporate shareholders are exposed to unlimited liability, but this factor is offset by the tax advantages of incorporation.

D- Corporations generally find it easier to raise large amounts of capital.

E- Corporations generally face fewer regulations.