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?

Question $2$ options:

Less of a corporation's income is generally subjected to taxes than would be true if the firm were a partnership.

Corporate shareholders escape liability for the firm's debts, but the tax disadvantages of the corporate form of organisation may offset this factor.

Corporations generally find it relatively difficult to raise large amounts of capital.

Corporate investors are exposed to unlimited liability.