Which of the Following Statements Is CORRECT

Multiple Choice

Which of the following statements is CORRECT?

A) One advantage of forming a corporation is that equity investors are usually exposed to less liability than they would be in a partnership.
B) Corporations face fewer regulations than proprietorships.
C) One disadvantage of operating a business as a proprietor is that the firm is subject to double taxation,because taxes are levied at both the firm level and the owner level.
D) It is generally less expensive to form a corporation than a proprietorship because,with a proprietorship,extensive legal documents are required.
E) If a partnership goes bankrupt,each partner is exposed to liabilities only up to the amount of his or her investment in the business.