Question

Corporations and partnerships have an advantage over proprietorships because a sole proprietor is exposed to unlimited liability, but the liability of all investors in the other types of businesses is more limited.TrueFalse

Answer 1

False

Step-by-step explanation:

The owners of sole proprietorships and general partnerships both have the disadvantage of unlimited liability.

The owners or partners of limited liability partnerships, limited liability companies, C and S corporations are the ones that are not exposed to unlimited liability.