Which of the following is a disadvantage of the company form of business?
A) It has an unlimited life.
B) It must comply with the Corporations Act 2001 and other legislation.
C) Its shareholders have limited liability for debts incurred by the business.
D) It has the ability to raise large amounts of capital.

Question

Quizplus · Accepted Answer

The disadvantage of the company form of business is that it must comply with the Corporations Act 2001 and other legislation. This can be time-consuming and expensive, especially for small businesses. The other options listed are advantages of the company form of business.

Which of the Following Is a Disadvantage of the Company