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:

Merger Clause

A provision in a contract stating that the agreement is the complete and final agreement between the parties, superseding all oral or written agreements made prior.

Statute Of Frauds

A legal doctrine requiring certain contracts to be in writing and signed by the parties involved, to be enforceable.

Admission

The act of conceding to a point in an argument or acknowledging the truth of a claim, or the allowance into a place, organization, or institution.

Parol Evidence Rule

A legal principle that prevents parties from presenting extrinsic evidence to modify, vary, or contradict the terms of a written contract.