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    Corporations

    Question

    Which of the following is not an advantage of a corporate form?

    Which of the following is not an advantage of the corporate form of business organization? a. No personal liability b. Easy to transfer ownership c. Favorable tax treatment d. Easy to raise funds I can't figure out if it is A or C?
    a few seconds ago 3 Answers

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    C. is not an advantage of the corporate form of business ownership. If you are referring to C-Corp's the answer is C. C-Corps are double-taxed. (S-Corp's and LLC's are not double-taxed, those are treated as pass-thru's) Answer is definitely not A. Corp's shield owners from personal liability, so this would be an advantage.
    a few seconds ago

    Other Answers

    • Well it certainly isn't A. The best advantage is the corporate veil of no personal liability. Given the answers, i gotta go with C. Corporations pay tax just like every body. It is easy to transfer ownership. It is USUALLY easy to raise capital.

      by Kevin R - 13 hours ago

    • Probably C because corporate taxes are piled on top of whatever personal income taxes the owners pay on dividends. Probably not B because transfer of shares would have to be unanimous for "ownership" to be transferred. Probably not A because only certain individuals (such as treasurer) have personal liability. So that leaves D. A corporation can raise funds by selling shares, but so can an LLC or an LP, so it is not a particular advantage of corporations.

      by beSee-n-u - 13 hours ago

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