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What Is the Fundamental Difference Between a Sole Proprietorship and a Corporation

Question 29

Multiple Choice

What is the fundamental difference between a sole proprietorship and a corporation?


A) A corporation is larger than a sole proprietorship.
B) A corporation is a legal entity that is separate from its owners, while in a sole proprietorship, there is no such distinction.
C) A sole proprietor has unlimited liability, while investors in a corporation have limited liability.
D) A corporation is more bureaucratic than a sole proprietorship.
E) There isn't really a fundamental difference between a sole proprietorship and a corporation.

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