Which of the following is not one of the things that causes a corporation to have a significant advantage over a partnership or a proprietorship?
A) Limited liability.
B) Ease of transfer of ownership interest.
C) Unlimited life.
D) Elimination of double taxation.
E) Ability to retain earnings and thus convert income from personal income to capital gains.

Question

Quizplus · Accepted Answer

Double taxation is a disadvantage for corporations, not an advantage. It refers to the fact that corporations must pay taxes on their profits, and then shareholders must pay taxes again on any dividends they receive from those profits. This can lead to more taxes being paid overall, compared to a partnership or proprietorship where profits are only taxed once as personal income for the owner(s).

Which of the Following Is Not One of the Things