Which of the Following Is a Disadvantage of the Corporation

question 110

Multiple Choice

Which of the following is a disadvantage of the corporation compared to the sole proprietorship?

• A)limited liability
• B)difficulty raising start-up money
• C)lack of profitability
• D)corporate income is taxed twice
• E)corporations are more vulnerable in the case of the death of an owner

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Definitions:

Complex Backward Integration

A strategy where a company expands its role to fulfill tasks formerly completed by businesses up the supply chain, but with more intricate and multifaceted connections or processes.

Highly Specialized

Highly specialized refers to products, services, or roles that are focused on a narrow aspect, requiring specific knowledge or skills and catering to a particular niche or market segment.

Low Switching Costs

Low switching costs refer to the minimal barriers or expenses that consumers face when changing from one product, service, or provider to another, leading to higher competition among companies.

Substitute Products

Goods or services that can serve as replacements for each other, meeting the same needs or desires of the consumers, thereby providing a choice.