Which of the following statements regarding the corporate form of business is correct?

Question

Which of the following statements regarding the corporate form of business is correct?

 

A. The disadvantages are that generating capital is difficult and that owners have limited liability.

 

B. Disadvantages are that the business is subject to government regulations and double taxation on its income.

 

C. One disadvantage is that ownership is easy to transfer.

 

D. All of the other options are correct.

Answer 1

A Limited liability is an advantage, and capital is easier to raise.

 

B is correct

 

C. False, Ownership is easy to transfer.

 

D. FALSE