Question

Which of the following statements is correct?a.An advantage of the corporate form for many businesses is the fact the corporate tax rate always exceeds the personal tax rate, which is the rate at which proprietorships and partnerships are taxed.b.Because corporations enjoy the benefits of limited liability, easy transferability of ownership interest, unlimited life, and favorable tax status relative to the situation for partnerships and proprietorships, most large businesses choose to incorporate.c.Because lawyers have the incorporation process so automated (e.g., word processors for drawing up the necessary papers), it is less expensive to form a corporation than to form a proprietorship or partnership.d.There are more partnerships and sole proprietorships than corporations in the U.S., but corporations produce more goods and services than do other forms of business.e.A major disadvantage of a regular partnership or a corporation as a form of business is the fact that they do not offer their owners limited liability, whereas proprietorships do.

Answer 1

Answer:

C. There are more partnerships and sole proprietorships than corporations in the U.S., but corporations produce more goods and services than do other forms of business.

Explanation:

The reason of this is the complexity of the process.

In general , forming partnership and sole proprietorship have lesser requirements than forming a corporation. So  most business owner choose these based on convenience purposes.

That's being said, it is far easier for corporations to gather capital for their operation. They can do it by selling stocks /part ownership of their company. Larger capital means hat corporations will have more money to buy things such as materials and machinery. This is why corporations produce more goods and services than do other forms of business.