The disadvantages are: (Select all the choices that apply.) A. Income to a corporation is subject to double taxation, once at the corporate level and again when received by the owners in the form of a dividend. B. The life of the business usually ends with the death of any of the owners. C. The corporation is more complicated and more expensive to set up than other business entities. D. Corporate liabilities can be passed on to the shareholders, thus making stock ownership primarily the realm of wealthy investors.
The disadvantages are: (Select all the choices that apply.) A. Income to a corporation is subject to double taxation, once at the corporate level and again when received by the owners in the form of a dividend. B. The life of the business usually ends with the death of any of the owners. C. The corporation is more complicated and more expensive to set up than other business entities. D. Corporate liabilities can be passed on to the shareholders, thus making stock ownership primarily the realm of wealthy investors.
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 14MCQ
Related questions
Question
![The disadvantages are: (Select all the choices that apply.)
A. Income to a corporation is subject to double taxation, once at the corporate level and again when received by the owners in the form of a dividend.
B. The life of the business usually ends with the death of any of the owners.
C. The corporation is more complicated and more expensive to set up than other business entities.
D. Corporate liabilities can be passed on to the shareholders, thus making stock ownership primarily the realm of wealthy investors.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f7602ed-4a53-41f4-a94b-7f986713e858%2F725de1f2-606d-45d3-a79f-940cdbb98cb4%2Fc7jlb95_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The disadvantages are: (Select all the choices that apply.)
A. Income to a corporation is subject to double taxation, once at the corporate level and again when received by the owners in the form of a dividend.
B. The life of the business usually ends with the death of any of the owners.
C. The corporation is more complicated and more expensive to set up than other business entities.
D. Corporate liabilities can be passed on to the shareholders, thus making stock ownership primarily the realm of wealthy investors.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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