Question

Which statements are true? Check all that apply: C-corporations are subject to double taxation. LLCs are best for taking venture capital. A general partnership can have many owners. Corporations and LLCs limit the owners' liability.

Answer 1

Answer: All except " LLCs are best for taking venture capital" .

Explanation:

1. The corporations have to pay corporate tax and after that the stakeholders have to pay tax on their dividends. Hence they are subject to double taxation.

2. The number of partners in a general partnerships could be  greater than two.

3. In case of LLC and corporations, the entity is considered to separate from its owners. Hence the owners enjoy limited liability benefit.