Which of the following statements is CORRECT?
A) One drawback of forming a corporation is that it generally subjects the firm to additional regulations.
B) One drawback of forming a corporation is that it subjects the firm's investors to increased personal liabilities.
C) One drawback of forming a corporation is that it makes it more difficult for the firm to raise capital.
D) One advantage of forming a corporation is that it subjects the firm's investors to fewer taxes.
E) One disadvantage of forming a corporation is that this makes it more difficult for the firm's investors to transfer their ownership interests.

Question

Quizplus · Accepted Answer

Forming a corporation subjects the firm to additional regulations, such as the requirement to file annual reports and hold regular shareholder meetings.

Which of the Following Statements Is CORRECT