One disadvantage of the corporate form of business ownership is the:

2 pts Question 35 One disadvantage of the corporate form of business ownership is the: double taxation of distributed profits

Answer

Corporate firm of business has limited liability of its
shareholders for the firms debts

moreover firm potential for an unlimited life as it has separate
identity not related any individual

Corporate firm can raise the greater capital by issuing capital
stock

So the disadvantage here will be double taxation of distributed
profits

As the profits are taxable on corporate as well as profits
distributed to owners

So correct answer is A double taxation of distributed
profits

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts