Which of the following is normally considered a major disadvantage of the corporate form of business?
A)unlimited liability of owners.
B)difficult transfer of ownership.
C)limited life.
D)double taxation of earnings.

Question

Quizplus · Accepted Answer

Double taxation of earnings is typically considered a major disadvantage of the corporate form of business. This means that the corporation is taxed on its profits, and then the shareholders are also taxed on any dividends they receive from those profits. This can result in a higher overall tax burden for both the corporation and its shareholders. The other options listed - unlimited liability of owners, difficult transfer of ownership, and limited life - are disadvantages of other forms of business ownership like sole proprietorships, partnerships, and LLCs.

Which of the Following Is Normally Considered a Major Disadvantage