which one of the following is a disadvantage of the corporate form of business?

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05-10-2021
Business

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which one of the following is a disadvantage of the corporate form of business?

Sagot :

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Parrain Parrain · Answer 1 · 2021-10-06T06:44:24-04:00

A major disadvantage to the corporate form of business is D. Legal requirements

Corporations acquire investments from various shareholders and for that reason, the law tries to protect those shareholders by forcing corporations to go through several legal requirements such as:

Corporations must maintain proper accounting records for transparency
Corporations must be adequately registered including at a state level
Corporations must hold Board meetings and record those meetings to ensure that board members are acting in the best interest of shareholders.

In conclusion, corporations have to go through several legal requirements which can be quite cumbersome as well as expensive. This is therefore a disadvantage to them.

Find out more at https://brainly.com/question/12838396.

The options for this question include:

A) Access to capital

B) Unlimited personal liability for owners

C) Limited firm life

D) Legal requirement

Sagot :

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