Question

The major disadvantages of forming a business under a _____ structure is that there is double taxation of profits, and the cost of forming the business and operating the business is higher than other structures.

Answer 1

Answer:

The correct answer is Corporations.

Explanation:

Corporate structure refers to how a business is organized to meet its objectives. The corporate structure of a business is important because it determines the ownership, control and authority of that corporation. These characteristics in a corporation are represented by 3 actors: Shareholders, Board of Directors and Directors. The ownership (the owners) are the shareholders. The control is executed by the board of directors on behalf of the shareholders, while the authority over the day-to-day operations is carried out by the Directors.