Which of the Following Statements Is CORRECT

Multiple Choice

Which of the following statements is CORRECT?

A) Most businesses (by number and total dollar sales) are organized as proprietorships or partnerships because it is easier to set up and operate in one of these forms rather than as a corporation.
However, if the business gets very large, it becomes advantageous to convert to a corporation, primarily because corporations have
Important tax advantages over proprietorships and partnerships.
B) Due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of U.S. businesses (in terms of number
Of businesses) are organized as corporations.
C) Due to legal considerations related to ownership transfers and limited liability, most business (measured by dollar sales) is conducted by corporations in spite of large corporations' often
Less favorable tax treatment.
D) Large corporations are taxed more favorably than sole
Proprietorships.
E) Corporate stockholders are exposed to unlimited liability.