Which of the following is the disadvantage of setting up a "Corporation"? Double taxation and limited capital Double taxation and agency problem Illiquidity and agency problem Illiquidity and double taxation

Q: Corporations are not without certain disadvantages. Most corporations are taxable entities, and…

A: Corporation earns profits, it is required to pay corporate income taxes on those earnings.…

Q: What limitations are S-corporations subject to?

A: S corporation is referred to as the corporation, which are treated regarding the federal tax…

Q: Which of the following is not an advantage of a corporation? O Double taxation Continuous life…

A: Double taxation means income tax paid twice on company's income.So, it is not an advantage for…

Q: How does our tax system influence the use of debt financing by corporations?

A: Answer: If a company uses debt financing, it will pay interest while if it uses stock, dividends are…

Q: 1. The following defines taxation, except: *   a. It is an inherent power of the state. b. It is an…

A: Federal Tax: Federal tax is levied by US Federal government and paid to the national government. The…

Q: Why corporations are liable to pay double tax?

A: Tax is a charge which is paid on the taxable income towards government. For corporations tax is…

Q: What allows financial institutions to generate a profit? What are the conditions under which their…

A: THE INTRODUCTION: The marketplaces where financial assets and instruments are traded and the sites…

Q: The advantages of owning a corporation include a. Difficulty in transferring ownership. b. Limited…

A: Corporation: A corporation is an organization—usually a group of people or a company—authorized by…

Q: what is mean by Tax evasion and what reasons the people do this?

A: Tax obligation represents the liability of the taxpayer towards the government for the payment of a…

Q: Which is not a characteristic of corporate income tax? Progressive tax   General tax Direct tax…

A: Taxes are the major source of revenue for the government. There can be various type of taxes which…

Q: Explain the main differences between tax evasion and tax avoidance and list the main actions taken…

A: Tax evasion is the use of illegal methods of concealing income or information from the IRS or other…

Q: With or against those arguments? Taxing wealth Progressive taxation system Regressive taxation…

A: Taxing wealth : It is about imposing the tax or collecting the tax on the wealth capital of the…

Q: One of the following characteristics of a corporation is deemed a disadvantage. Which is it? a.…

A: Corporation is a finance by the shareholders and handled by the management and employees. We can…

Q: Disadvantages of the corporate form include: Multiple Choice double taxation agency costs

A: A Corporation is an entity created by law, in which owners have limited liability. They can lose up…

Q: Distinguish between “juridical double taxation” and “economic double taxation”.

A: Juridical double taxation refers to a situation where the same taxpayer is subject to taxation on…

Q: Which of the following is a disadvantage of the corporate form of organization? difficulty in…

A: The corporate form of organization might pay corporate income taxes on their earnings which is…

Q: you mean by preference capital ? 2. What do you mean by fair value ? 3. What do you mean by the…

A: Money raised by the  company for business may be equity or debt or preference shares.

Q: that without taxes, a government would be paralyzed for lack of power to activate and operate it,…

A: Taxes are levied by the government on their citizen in order to generate the income for the project…

Q: Which of the following does not make it easier for corporation to raise capital? a) limited…

A: OPtion explanation a) Shareholders of corporation have limited liability b) Corporation…

Q: Do those who are unable or unable to operate under a conventional corporation's limitations have a…

A: Here is the answer:

Q: Why would a corporation every distribute income? Why not let stock appreciation be the income?

A: when the corporation on the income then those income is to be distributed among the stakeholder…

Q: How is a business activity distinguished from an investment activity? why is this distinction…

A:

Q: Which of the following does not make it easier for corporation to raise capital? a) limited…

A: Corporation has a separate legal entity and they can raise funds from the public as per the…

Q: When you claim that a corporation has negative working capital, what does it mean?

A: The money you have had on hand to meet your current and short-term obligations is known as working…

Q: The corporate form of business is never preferred from a tax perspective because of the inherent…

A: Double Taxation:-It is a taxation concept where income gets taxed twice due to taxation principles.…

Q: What does double taxation of corporate income mean? Could income ever be subject to tripletaxation?…

A: Double taxation of corporate income means the fact that the corporate income is subject to tax at…

Q: Which of the following is not an advantage of the corporate form of business? a. limited liability…

A: Corporate is a popular form of business for the large and small industry. These types of business…