Which of the Following Is a Disadvantage of the Corporate

question 99

Multiple Choice

Which of the following is a disadvantage of the corporate form of business?

• A)A corporation faces difficulty in attracting substantial amounts of funds.
• B)The owners of a corporation are subject to unlimited personal liability for the business' debts.
• C)Setting up a corporation is more complex and time-consuming than setting up a proprietorship or a partnership.
• D)A corporation is said to have limited life.
• E)Ownership interests cannot be transferred as easily as proprietorship or partnership interests.

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Definitions:

Educational System

A structured and formal process designed for the teaching and learning of knowledge and skills.

Alimony

Payments made to a spouse or ex-spouse under a separation or divorce agreement, potentially deductible for the payer and taxable for the recipient.

Former Spouse

An individual who was previously married to another individual but is now legally divorced or separated.

Property Settlement

An agreement reached between parties in a divorce for dividing property and assets.