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d. Corporations, unlike sole proprietorships, do not pay tax; instead, shareholders are taxed on any dividends they receive. Corporations. Is limited liability always an advantage for a corporation and its shareholders? (Hint: Could limited liability reduce a corporation's access to financing?) (L01-3) Financial Managers Which of the following statomonto morona ra d. Corporations, unlike sole proprietorships, do not pay tax; instead, shareholders are taxed on any dividends they receive. Corporations. Is limited liability always an advantage for a corporation and its shareholders? (Hint: Could limited liability reduce a corporation's access to financing?) (L01-3) Financial Managers Which of the following statomonto morona ra