Final Answer:
The disadvantages of the corporate form include double taxation, complex legal requirements, and lack of personal control (2), (3), and (1), respectively.
Step-by-step explanation:
Double taxation stands as a significant disadvantage of the corporate form. Corporations are subject to taxation at both the corporate level on profits and at the individual level when dividends are distributed to shareholders. This results in an effective taxation of the same income twice, reducing the overall funds available for distribution.
Complex legal requirements add another layer of challenge. Corporations must adhere to stringent regulations and formalities, involving extensive documentation, reporting, and compliance measures. These demands often necessitate professional assistance and incur additional costs, making it cumbersome for smaller entities to operate efficiently within the corporate structure.
Moreover, the lack of personal control is a notable drawback. In a corporation, decisions are typically made collectively by a board of directors or shareholders, diluting individual control over crucial choices. This diffusion of control may lead to conflicts of interest and a sense of detachment among individual stakeholders from direct decision-making processes, impacting the direction and management of the business.