Which of the Following Is a Disadvantage of a Corporation

question 121

Multiple Choice

Which of the following is a disadvantage of a corporation when compared to a partnership?

• A)The stockholders have limited liability.
• B)The corporation is treated as a separate legal entity from the stockholders.
• C)The corporation and its stockholders are subject to double taxation.
• D)The corporation must account for the transactions of the business as separate and apart from those of the owners.

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Definitions:

Analytical

Pertaining to the systematic examination and evaluation of details of a complex structure or substance.

Phoneme

The smallest unit of sound in a language that can distinguish meaning, such as the difference between the sounds of "p" and "b" in "pat" and "bat."

Phonology

The study of the organization and system of sounds in languages.

Morpheme

The smallest grammatical unit in a language that carries meaning; can be a word or a part of a word (such as a prefix).