1. Partnerships generally have a tax advantage over corporations. [T/F] 2. Corporations are generally less highly regulated than proprietorships. [T/F]

1. True

2. False

Explanation:

1. It is true that Partnerships generally have a tax advantage over corporations because Partnerships never really pay taxes since profits and losses are passed on to their owners since they share profits and losses, these partners then incorporate these profits in their personal income tax.

Secondly Partnerships avoid the double taxation because corporations are taxed and their owners (shareholders) are taxed when they earn dividends.

Thirdly, in corporations losses are not passed on to their shareholders to reduce their tax payable but that is a benefit in partnerships.

2. It is false that Corporations are generally less highly regulated than proprietorships because proprietorships are non required by law to publish their statement of affairs but quoted companies are mandated by law to do so. Corporate governance and audits are mandatory for corporations but not for proprietors

[T/F] 2. Corporations are generally less highly regulated than proprietorships. [T/F]