Question

Which of the following statements is CORRECT?a. One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. b.Sole proprietorships are subject to more regulations than corporations. c.Sole proprietorships are subject to more regulations than corporations. In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner.d. Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones. e.Corporations of all types are subject to the corporate income tax. Cheers Inc. operates as a partnership. Now the partners have decided to convert the business into a regular corporation.

Answer 1

Answer:

Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones.

Explanation:

Sole proprietorships have a few advantages over different business substances. They are anything but difficult to frame, and the proprietors appreciate sole control of the business benefits. In any case, they likewise have disadvantages, the biggest of which being that the owner is personally liable for all business losses and liabilities.