Final answer:
It is false that forming a corporation is less expensive than a sole proprietorship; the latter requires minimal legal documentation and fees, while the former involves more extensive legal processes and higher costs.
Step-by-step explanation:
The statement suggesting that it is generally less expensive to form a corporation than a sole proprietorship is false. Forming a corporation actually entails more complex and expensive legal processes, including registration with state and possibly national governments, the creation of extensive legal documents, and adherence to ongoing regulations, which could include significant fees. In contrast, a sole proprietorship is typically easier and less costly to establish because it requires minimal legal documentation and fees, reflecting its nature as an unincorporated business owned by one person. The sole proprietor does not need permission from the government to start the business and has fewer regulatory burdens to manage. However, the disadvantage of a sole proprietorship is the issue of unlimited liability, meaning the owner's personal assets are at risk if the business incurs debt or is sued, unlike in a corporation where liability is limited.