Which of the following is a disadvantage of a corporation?Multiple choice question.Shareholders have unlimited liability for the management of the corporation.It is difficult to raise capital by issuing stock.Formalities are required in establishing and maintaining the corporate form of business.Profits from the business are taxed as income to the partners, not to the shareholders.

Which of the following is a disadvantage of an S corporation?Multiple choice question.An S corporation may not adopt a calendar year for tax purposes.It is mandatory for an S corporation to have more than 100 shareholders.Only two classes of stock are permitted in an S corporation.An S corporation may not deduct most fringe benefits for shareholders.

Which of the following is a disadvantage of operating a business as a sole proprietorship?Multiple choice question.Single taxationPersonal liability for business debtsManagerial control of business and profitsFewer legal formalities required for business start-up compared to a corporation

The advantages of a corporation compared to a sole proprietorship or partnership include:Multiple ChoiceThe ability of stockholders to make operating decisions for their company.Less paper work.Limited liability.Lower total taxes.

Companies are a separate legal entity independent of its owners. Which of the following is NOT a disadvantage of this separation?Group of answer choicesA company must pay income tax on its taxable income.The company’s shares can only be sold on organised stock markets like the ASX.Companies may find it more difficult to borrow money because the owners have limited liability.Companies are subject to more government regulation.

Identify the primary disadvantages of the corporate form of business compared to a sole proprietorship or partnership.Check All That ApplyOwnership limitationsOwnership limitationsDouble taxationDouble taxationPersonal liabilityPersonal liabilityMore paperwork