Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Research On Theory And Practice Of Financial Crimes

Authors: Abdul Rafay

1st Edition

1799855678, 978-1799855675

More Books

Students also viewed these Finance questions

Question

What is meant by 'Wealth Maximization ' ?

Answered: 1 week ago