Which of the following statements about business organizations is CORRECT?

It's unlikely for a firm to be organized as a corporation when it requires a lot of capital.

It is generally easier to transfer one's ownership interest in a partnership than in a corporation.

A significant risk in starting a proprietorship is that you may be exposed to personal liability if the business goes bankrupt.

If a corporation elects to be taxed as an LLC or S corporation, then both it and its stockholders can avoid all federal taxes.

Tax advantages of incorporation offset the corporate shareholders' exposure to unlimited liability.