Question $3$

Multiple Choice: Conceptual

Please note that some of the answer choices, or answers that are very close, are used in

different questions. This has caused us no difficulties, but please take this into account

when you make up exams.

Which of the following statements is CORRECT?

One of the disadvantages of incorporating your business is that you could become

subject to the firm's liabilities in the event of bankruptcy.

Proprietorships are subject to more regulations than corporations.

In any partnership, every partner has the same rights, privileges, and liability exposure as

every other partner.

Corporations of all types are subject to the corporate income tax.

Proprietorships and partnerships generally have a tax advantage over corporations.