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

---

Definitions:

Ratifies

The act of formally approving or confirming a decision or agreement, making it officially valid.

Valid

Legally sound, effective, and binding.

Contract for Sale

A legally binding agreement where one party agrees to sell and another agrees to buy goods or property under specified terms and conditions.

Writing

A method of communication or expression through the use of symbols, characters, or scripts in a tangible form.