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.

---

Definitions:

Condominium Ownership

A form of property ownership where individuals own a unit of a larger complex and share common areas with other unit owners.

Property Taxes

Taxes assessed on real estate by a local government, based on the property's value.

Federal Income Tax

A tax levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Trade Fixtures

Articles of personal property that have been annexed to real property leased by a tenant during the term of the lease and that are necessary to the carrying on of a trade.