BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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One disadvantage of a corporation is ____
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the corporation provides limited liability for its owners.
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the corporation can sell stock to raise revenue.
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the corporation is subject to many government regulations.
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the corporation pays limited taxes
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Explanation:
Detailed explanation-1: -Disadvantages of a corporation include it being time-consuming and subject to double taxation, as well as having rigid formalities and protocols to follow. This article is for entrepreneurs who are trying to determine their business structure and whether a corporation makes sense for them.
Detailed explanation-2: -Disadvantages of Corporate Governance The burden of staying legally compliant: Corporates generally have loads of compliance that have to be followed, attracting different laws based on their industry. Corporate governance ensures legal compliance, but it does come at a very hefty price. – Stock sales and purchases.
There is 1 question to complete.