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

A disadvantage of a C Corporation is that its income is subject to double taxation. This means that the corporation's profits are taxed first at the corporate level, and then the dividends paid to shareholders are taxed again as personal income on their tax returns.

Which of the Following Is a Disadvantage of a C