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:

Devise

In a will, a gift of real property.

Real Property

Property that includes the soil and any permanently bound fixtures to it, like constructions and arboreal elements.

Bequest

A gift left to someone in a will.

Personal Property

Moveable property that is not fixed permanently to one location, such as furniture, vehicles, and electronics, as opposed to real estate.