Which of the following is normally considered a disadvantage of the corporate form of business?
A) Unlimited liability of owners
B) Difficult transfer of ownership
C) Limited life
D) Double taxation of earnings

Question

Quizplus · Accepted Answer

Double taxation of earnings is normally considered a disadvantage of the corporate form of business. This is because corporations are taxed on their income, and then the shareholders are also taxed on the dividends they receive from the corporation. The other options, such as unlimited liability of owners, difficult transfer of ownership, and limited life are disadvantages of other forms of business such as partnerships and sole proprietorships.

Which of the Following Is Normally Considered a Disadvantage of the Corporate