Question

Disadvantages associated with corporations include:

a.taxation
b.owners' interests differ from managements'
c.limited liability
d.high cost

Answer 1

The disadvantages of corporations include taxation, diverging interests of owners and management, limited liability, and high cost.

Step-by-step explanation:

The disadvantages of corporations include:

1. Taxation: Corporations face a higher tax burden compared to other business structures.
2. Ownership and Management Differences: The interests and goals of owners and management may not align, which can create conflicts.
3. Limited Liability: While limited liability protects owners from personal financial risk, it can also limit accountability.
4. High Cost: Setting up and maintaining a corporation can be expensive due to legal fees, filing requirements, and other costs.