Which of the following could be described as both an advantage and a disadvantage of incorporation?
A)Continuous existence
B)Limited liability
C)Double taxation
D)Lack of mutual agency

Question

Quizplus · Accepted Answer

Limited liability is both an advantage and a disadvantage of incorporation. It is an advantage because it protects the personal assets of shareholders from being used to pay off the corporation's debts, but it is a disadvantage because it may lead to reckless behavior on the part of management knowing that they will not be personally held liable for the corporation's actions.

Which of the Following Could Be Described as Both an Advantage