Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Business Organization

Financial Accounting

1. Introduction to Accounting

Business Organization

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Multiple Choice

Which of the following is normally considered a disadvantage of the corporate form of business?

Double taxation of earnings

Continuous existence regardless of ownership changes

Limited liability for owners

Ability to raise large amounts of capital

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Verified step by step guidance

Understand the corporate form of business: A corporation is a legal entity that is separate from its owners, providing benefits such as limited liability, continuous existence, and the ability to raise capital.

Analyze the options provided in the question: Each option highlights a characteristic of corporations, and you need to identify which one is considered a disadvantage.

Review the concept of double taxation: Corporations are subject to double taxation, meaning that earnings are taxed at the corporate level and again at the individual level when distributed as dividends to shareholders. This is often seen as a disadvantage.

Compare the other options: Continuous existence, limited liability, and the ability to raise large amounts of capital are generally considered advantages of the corporate form of business.

Conclude that double taxation of earnings is the correct answer because it is a unique disadvantage of corporations compared to other business structures like sole proprietorships or partnerships.