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Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?
Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?
A. Corporate shareholders are exposed to reduced liability, but this factor is offset by the tax advantages of incorporation.
B. Less of a corporations income is generally subject to taxes.
C. Corporate investors are exposed to unlimited liability.
D. Corporations generally find it easier to raise capital.
E. Corporations generally face fewer regulations.
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