Which of the following is a disadvantage of a C Corporation?
A) Income is subject to double taxation.
B) Limited liability
C) Raising capital is easier than a partnership or sole proprietorship.
D) Stock is liquid if traded on a major stock exchange.
E) No restrictions exist on the number of shareholders.

Question

Quizplus · Accepted Answer

The disadvantage of a C Corporation is that income is subject to double taxation. This means that the corporation pays taxes on its profits, and then shareholders also pay taxes on any dividends they receive.

Which of the Following Is a Disadvantage of a C