Which of the Following Is a Disadvantage of a C

question 16

Multiple Choice

Which of the following is a disadvantage of a C Corporation?

• A) Income is subject to double taxation.
• B) limited liability
• C) Raising capital is easier than a partnership or sole proprietorship.
• D) Stock is liquid if traded on a major stock exchange.
• E) No restrictions exist on the number of shareholders.

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Definitions:

Criticism

The expression of disapproval of someone or something based on perceived faults or mistakes, or the analysis and judgment of the merits and faults of a literary or artistic work.

Electric Shock

A sudden discharge of electricity through a part of the body, which can be used therapeutically in certain psychiatric treatments but also poses risks.

Reinforcement

The process by which a stimulus or event strengthens or increases the probability of the response that it follows.

Stimulus

Any event or situation that evokes a response.