Final answer:
The disadvantage of forming a corporation mentioned is the subservience of minority stockholders to the majority, showcasing a lack of influence on corporate decisions for minority shareholders. Other disadvantages include adherence to stringent government regulations, a significant tax burden, minimal shareholder input in operations, and the costliness of initial setup. The correct option is A.
Step-by-step explanation:
One of the disadvantages of forming a corporation is A. The subservience of minority stockholders to the wishes of the majority subject only to equitable restraints. This occurs because individual minority shareholders typically do not have enough voting power to influence corporate decisions, which can be dominated by majority shareholders or a controlling interest.
Other disadvantages include complex rules and regulations set by the government, a significant tax burden, little operational input from shareholders, and the high initial cost of setting up a corporation.
In contrast, advantages of a corporation include the ease of raising financial capital either through bank loans, selling stocks, or issuing bonds, limited liability for shareholders, and the legal status of a corporation as an independent entity which allows it to sue, be sued, enter into contracts, and file for bankruptcy independently of the owners.