ECONOMICS
COMPETITION AND MARKET STRUCTURES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Sole Proprietorship
|
|
|
Partnership
|
|
|
Corporation
|
|
|
Non-profit
|
Detailed explanation-1: -Double taxation because both corporate profits and dividends paid to owners are taxed, although the dividends are taxed at a reduced rate. Owner has unlimited liability; total wealth can be taken to satisfy business debts. Dissolves or must reorganize when partner dies. More expensive and complex to form.
Detailed explanation-2: -Before becoming a corporation, you should be aware of these potential disadvantages: There is a lengthy application process, you must follow rigid formalities and protocols, it can be expensive, and you may be double taxed (depending on your corporation structure).
Detailed explanation-3: -Double taxation. Depending on the type of corporation, it may pay taxes on its income, after which shareholders pay taxes on any dividends received, so income can be taxed twice. Excessive tax filings. Independent management. 20-Nov-2022
Detailed explanation-4: -Distinct Legal Entity. Double Taxation. Expensive to Form. Complicated to Form. Extensive Rules to Follow. Frequently Asked Questions (FAQs) 13-Sept-2022
Detailed explanation-5: -the company can be expensive to establish, maintain and wind up. the reporting requirements can be complex. your financial affairs are public. if directors fail to meet their legal obligations, they may be held personally liable for the company’s debts. More items