Which of the Following Is a Disadvantage of Corporations as a Form

question 31

Multiple Choice

Which of the following is a disadvantage of corporations as a form of business ownership?

• A) Their owners have unlimited liability.
• B) They have very limited ability to raise financial resources.
• C) Any earnings they distribute to shareholders are subject to double taxation.
• D) They lack permanence, since in most provinces corporate charters are only valid for 40 years.