Which of the following statements is INCORRECT? Select one:

a. Corporate shareholders are not subject to personal liabilities, if the firm goes bankrupt.

b. If a corporation elects to be taxed as an S corporation, then both the firm and its shareholders can avoid paying taxes.

c. The more capital, or funds, a firm is likely to require, the greater the probability that it will be organized as a corporation.

d. Organizing as a corporation makes it easier for the firm to raise capital.