Which of the following is untrue regarding professional corporations? A. State statutes permitting professional corporations all apply only to specified professions. B. All states have statutes which permit the practice of professions by duly licensed individuals in the corporate form. C. There is a supplement to the MBCA which deals with professional corporations. D. Professionals may avoid personal liability for corporate debts by incorporating.

The following is untrue regarding professional corporations:

D. Professionals may avoid personal liability for corporate debts by incorporating.

Explanation:

The key difference between a professional corporation and other forms of business is that the professional will still be liable for personal liability that accrues out of his practice.  The other professionals involved in the business may not be affected as a result of the misconduct of their partners.  A professional corporation is usually the corporation of choice for lawyers, physicians, accountants, engineers, and other licensed professionals.

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