Final answer:
The correct answer is d.) margin calls. Drawbacks of using the corporation structure for a business include being complicated, expensive, and subject to double taxation.
Step-by-step explanation:
The correct answer is d.) margin calls. This is NOT a drawback of using the corporation structure for a business.
Drawbacks of using the corporation structure for a business include:
- Complicated: The rules and regulations set forth by the government for corporations can be complex and may require specialized legal and accounting assistance to navigate.
- Expensive: Setting up a corporation can involve various costs such as legal fees, filing fees, and ongoing compliance expenses.
- Double taxation: Corporations are subject to double taxation, where the business itself is taxed and the dividends paid to shareholders are also taxed.
However, margin calls are not related to the drawbacks of using the corporation structure for a business. Margin calls are demands by a broker for an investor to deposit additional funds to cover potential losses in a leveraged investment.