What Is a Disadvantage of a Corporation Relative to a Sole

question 11

Multiple Choice

What is a disadvantage of a corporation relative to a sole proprietorship or partnership?

• A)Owners have unlimited liability.
• B)Profits are taxed twice;as corporate profits and as dividend income and capital gains to stockholders.
• C)high cost of capital
• D)perpetual life
• E)None of the above.

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Definitions:

Communication Error

A failure in the process of exchanging information, leading to misunderstandings or the transmission of incorrect information between parties.

Decoding

The process of interpreting and understanding the meaning of a message received in communication.

Communication Process

The series of steps through which information is conveyed between sender and receiver.

Symbols

Visual or textual signs used to represent ideas, objects, or relationships in various contexts.