Torrie is thinking of starting up a small business selling hand-painted wine glasses.She is considering setting up her business as a corporation.What is one advantage to Torrie of setting up her business as a corporation?

Question

Quizplus · Accepted Answer

Setting up as a corporation allows Torrie to share risk with shareholders, as they invest money into the business and share in its profits and losses. This is a key advantage of the corporate structure. Choices A and C are incorrect because corporations face double taxation (profits are taxed at the corporate level and dividends are taxed at the shareholder level), and control may not solely rest with the founder, as shareholders and a board of directors can influence decisions.

Torrie Is Thinking of Starting Up a Small Business Selling