Sundance Systems has the following transactions during July.

a. July 5 Purchases 28 LCD televisions on account from Red River Supplies for $1,900 each, terms 3/10, n/30.
b. July 8 Returns to Red River three televisions that had defective sound.
c. July 13 Pays the full amount due to Red River.
d. July 28 Sells remaining 25 televisions from July 5 for $2,400 each on account.

Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u. s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporations’ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.