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:

Scoring Rubric

A set of criteria used for assessing or grading performances, products, or responses.

Critical Thinking

Conducting an objective scrutiny and appraisal of an issue with the goal of forming an evaluation.

Critical Thinking

A thorough investigation and evaluation of a case for the purpose of making an evaluation.

Stubborn

Showing dogged determination not to change one's attitude or position on something, especially in spite of good arguments or reasons to do so.