Final answer:
The correct answer to the question is B) double taxation, which is not considered an advantage but rather a disadvantage of the corporate form of business. Limited liability and continuous life are advantages of incorporating a business.
Step-by-step explanation:
The question asks which of the following is not considered an advantage of the corporate form of business. The options provided are A) limited liability, B) double taxation, and C) continuous life. The correct answer is B) double taxation.
This is not an advantage; rather, it is a well-known disadvantage of the corporate form, where the corporation's income is taxed at the corporate level, and dividends paid to shareholders are taxed again as personal income. In contrast, limited liability protects an investor's personal assets beyond their investment in the corporation, and continuous life ensures the corporation can continue operating beyond the involvement of its original founders or current owners.
Incorporation offers several benefits to entrepreneurs, such as the same profit and control compared with a sole proprietorship but with much less personal risk involved. The corporate form allows the raising of capital via stocks and bonds, provides continuity, and offers limited liability to its owners.
Nevertheless, setting up a corporation can be expensive and subject to government regulations, and shareholders may have limited control over management decisions.