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
Related questions
Question
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education