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Which of the following is the disadvantage of the corporate form of organization? a. double taxation...

Which of the following is the disadvantage of the corporate form of organization?

a. double taxation

b. finite life of the organization

c. unlimited liability of the owners

d. difficulty in raising capital

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Answer #1

Double taxation is one of the disadvantages associated with the corporate form of organisation because when the corporation will be paying the dividend. It will be paying the taxes in its personal corporate tax capacity and dividend will be an income to the shareholders and shareholders will also be pay tax, so there would be double taxation.

All the other options are not the disadvantage of Corporate form of organization.

Correct answer will be option (A) Double taxation

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