Ask Question
18 February, 04:50

What are the main advantages and disadvantages of organizing a firm as a corporation? (Select all the choices that apply.) A. Disadvantages: Double taxation, separation of ownership and control. B. Advantages: Limited liability, liquidity, separation of ownership and control. C. Disadvantages: Double taxation, infinite life. D. Advantages: Limited liability, liquidity, infinite life.

+1
Answers (1)
  1. 18 February, 06:01
    0
    A. Disadvantages: Double taxation, separation of ownership and control.

    B. Advantages: Limited liability, liquidity, separation of ownership and control.

    Explanation:

    The corporation has various advantages and disadvantages. Double taxation is a disadvantage of a corporation. The Company pays income tax on its earnings and then shareholders are taxed when the earnings after tax are distributed to then as dividends. The advantage includes that a company has limited liability. The shareholders can only claim the amount they invested in an occasion of bankruptcy or default of a company. The corporations do not have infinite life.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What are the main advantages and disadvantages of organizing a firm as a corporation? (Select all the choices that apply.) A. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers