An advantage of a corporation is that A-They have little government regulation. B-Owners have complete control and don't answer to shareholders. C-Owners have limited liability for debt. D-Owners pay fewer taxes than other businesses.
An advantage of a corporation is that A-They have little government regulation. B-Owners have complete control and don't answer to shareholders. C-Owners have limited liability for debt. D-Owners pay fewer taxes than other businesses.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An advantage of a corporation is that
A-They have little government regulation.
B-Owners have complete control and don't answer to shareholders.
C-Owners have limited liability for debt.
D-Owners pay fewer taxes than other businesses.
Expert Solution
Step 1
An advantage of a corporation is that C-Owners have limited liability for debt. This means that the personal assets of the owners are generally protected from the debts and obligations of the corporation. This is a significant advantage over other business structures, such as sole proprietorships or partnerships, where the owners are personally liable for the debts of the business.
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