A major disadvantage of a corporation is the

a. difficulty in transferring ownership.

b. limited life.

c. difficulty in raising capital.

d. double taxation of the corporation s income and of dividends paid to shareholders.

Question

Yurem Mora

Chemistry

6 May, 05:05

A major disadvantage of a corporation is the

a. difficulty in transferring ownership.

b. limited life.

c. difficulty in raising capital.

d. double taxation of the corporation s income and of dividends paid to shareholders.

+5

Answers (1)

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Justice Chung · Answer 1

A major disadvantage of a corporation is the double taxation of the corporation's income and of dividends paid to shareholders.

Corporations end up paying taxes twice. The corporation pays tax when it shows a profit. Secondly the corporation pays tax when it pays out dividends to its shareholders. Sole proprietorships and partnerships are taxed as owners of the business. The owners of a corporation are taxed individually from the corporation. The advantage of this is that the owners of a corporation are not taxed on the corporation's profit.

A major disadvantage of a corporation is thea. difficulty in transferring ownership.b. limited life.c. difficulty in raising capital.d. double taxation of the corporation s income and of dividends paid to shareholders.

A major disadvantage of a corporation is the

a. difficulty in transferring ownership.

b. limited life.

c. difficulty in raising capital.

d. double taxation of the corporation s income and of dividends paid to shareholders.