Which of the Following Is Not an Advantage of Starting

question 185

Multiple Choice

Which of the following is not an advantage of starting a new business as a corporation?

• A)separation of ownership and business liability
• B)enhanced ability to raise funds
• C)ability to share risks
• D)possibility of double taxation

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Definitions:

Scienter

Knowledge of the wrongful nature of one's actions, particularly in the context of securities fraud.

Antifraud Provisions

Sections within laws or regulations aimed at preventing deceitful practices and protecting parties from fraudulent activities.

Securities Exchange Act

A federal law enacted in the United States to regulate the trading of securities in the secondary market, to ensure transparency and fairness.

Internal Revenue Code

The body of law governing federal tax administration in the United States.