Which of the following is an attractive benefit of a corporation?
A) Corporations can enjoy double taxation.
B) Unlike limited partnerships, all owners of corporations are passive investors.
C) Corporations can protect their owners with unlimited liability.
D) Corporations can attract employees by offering stock options.

Question

Quizplus · Accepted Answer

Corporations can attract skilled employees by offering such benefits as stock options (the right to purchase shares of the corporation for a fixed price). Double taxation is a disadvantage of corporations. Owners of corporations have limited liability; and due to stock options and other benefits employees of corporations are quite often stockholders/owners of the corporations, as well.

Which of the Following Is an Attractive Benefit of a Corporation