Which of the following corporate characteristics is a disadvantage of the corporate form of business?

Question

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Double taxation is a disadvantage of the corporate form of business because corporations are taxed on their profits, and then shareholders are also taxed on any dividends they receive from those profits. This results in the same income being taxed twice, hence the term "double taxation." The other options listed, limited liability, no mutual agency, and transferability of ownership, are all advantages of the corporate form of business.

Which of the Following Corporate Characteristics Is a Disadvantage of the Corporate