What Is One of the Disadvantages of a Corporation, When

question 9

Multiple Choice

What is one of the disadvantages of a corporation, when compared to a partnership?

• A) The shareholders have limited liability.
• B) The shareholders are treated as a separate legal entity from the corporation.
• C) The corporation and its shareholders are potentially subject to double taxation.
• D) The corporation provides continuity of life.

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Definitions:

High Deductible

A high deductible refers to the larger initial amount paid by an insured person before insurance coverage for healthcare costs begins, often leading to lower premium costs.

Low-risk Drivers

Individuals who are considered to have a lower probability of filing an insurance claim due to their safe driving habits, often resulting in lower insurance premiums.

Lemons

A citrus fruit with a bright yellow color and sour taste, often used in cooking and beverages.

Plums

A type of fruit that belongs to the genus Prunus, known for their sweet taste and juicy texture, often consumed fresh, dried, or in various culinary dishes.