Which of the following statements is CORRECT?
a. Corporations face fewer regulations than proprietorships.
b. 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.
c. If a partnership goes bankrupt, each partner is exposed to liabilities only up to the amount of his or her investment in the business.
d. One advantage of forming a corporation is that equity investors are usually exposed to less liability than they would be in a partnership.
e. It is generally less expensive to form a corporation than a proprietorship because, with a proprietorship, extensive legal documents are required.
a. $250,000
b. $1,500,000
c. $750,000
d. $0
e. $500,000