Which of the Following Is a Disadvantage of the Corporation

question 49

Multiple Choice

Which of the following is a disadvantage of the corporation form of ownership?

• A)An inability to accumulate capital
• B)The unlimited liability to the members of the board
• C)Double taxation on profits and individuals
• D)The lack of continuity

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Definitions:

Net Income

The total revenue of a company minus its expenses, taxes, and costs, representing the company's profit.

Adjustment

A financial transaction that corrects or updates the accounting records, often made at the end of an accounting period to ensure accuracy.

Prepaid Rent

An accounting term that refers to rent payments made in advance of the rental period to which it relates, classified as a current asset on the balance sheet.

Adjusting Entries

Bookkeeping entries executed at the termination of an accounting period to apportion profits and costs to the era in which they effectively took place.