b. Inventory c. machinery and equipment, d. Cash e Short-term, highly-liquid, marketable securities. QUESTION 8 Which of the following statements is CORRECT? If a corporation elects to be taxed as an Scorporation, then both it and its stockholders can avoid all Federal taxes. This provision was put O a. into the Federal Tax Code in order to encourage the formation of small businesses. b. The more capital a firm is likely to require, the smaller the probability that it will be organized as a corporation oc. It is generally easier to transfer one's ownership interest in a partnership than in a corporation One danger of starting a proprietorship is that you may be exposed to personal liability if the business goes bankrupt. This problem would be avoided if you formed a corporation to operate the business. o e. Corporate shareholders are exposed to unlimited liability, but this factor is offset by the tax advantages of incorporation. Od QUESTION 9 Below are the 2013 and 2014 year end balance sheets for Hopeville Co.: 2013 2014 Assets Save Click Save and Submit to save and submit. Click Save All Answers to save all answers