Question

what is the primary disadvantage of the corporate form of organization? name at least two of the advantages of corporate organization

Answer 1

Answer and Explanation:

The primary disadvantage is that shareholders are double taxed for the revenue they earn this means that the tax is paid by the company and if their is any profit left then it will be distributed to the shareholders, on which the shareholder will again pay the tax on dividends receipt. So the disadvantage is that shareholders are double taxed on earnings from shares selling and dividends receipts.

Advantages include:

Limited liability and easily transfering the ownership of shares that you own are one of the best advantages from the investor's point of veiw. From company's point of view it can easily raise finance and enter any market which to take the benefits of tax relaxations.