Question

Question 2 of 10

What is one major disadvantage of corporations compared to other types of
business organizations?
A. Corporations have a difficult time raising money to get started
B. Corporations have a limited life span if their owners die or quit.
C. Shareholders may remove the original owners from a corporation
D. One owner assumes all the risk and liability in a corporation
SUOMI

Answer 1

C. Shareholders may remove the original owners from a corporation

Step-by-step explanation:

Unfortunately, the founders of a corporation can be removed from the business. The process of removing a shareholder is hectic but still possible. A shareholder's agreement binds the shareholders of a business or a corporation. The agreement is the equivalent of a contract among the shareholder.

A gross violation of the agreement by a shareholder may lead to their removal. The conditions and processes of removal are normally contained in the shareholder's agreement.