In Comparing the Various Business Organizational Forms Discussed in Chapter

Multiple Choice

In comparing the various business organizational forms discussed in Chapter 19, which of the following statements is false?

A) Only the C corporation is a taxable entity.
B) The original character of business revenues and expenses flows through to the owners for all organizational forms except the C corporation.
C) Only corporate shareholders have limited liability.
D) All owners except proprietors may enter into taxable transactions with their businesses.