Final answer:
Shareholders may prefer not to receive dividends from a business due to the complexity and cost of setting up dividend payments, as well as the potential for double taxation. Some shareholders may also choose to reinvest their earnings in the company's future growth.
Step-by-step explanation:
A shareholder may prefer not to receive dividends from a business for several reasons. One reason is that it can be more complicated and expensive to set up the infrastructure to issue dividends. Additionally, dividends are subject to "double taxation," where the business itself is taxed and the dividends paid to shareholders are also taxed. Another reason is that some shareholders may prefer to reinvest their earnings in the future growth of the company, rather than receiving cash dividends.