C. Serving as a Shock absorber and cleaning agent
A valid concern that Amelia might have is C. The regulations will be more burdensome than in other business structures.
A corporation refers to an organization that is authorized to act as a<em> single entity</em>. A <em>corporation</em> is a legal entity and is distinct from its owners.
It should be noted that under law, <em>corporations</em> can loan and borrow money, enter contracts, sue, own assets, etc. The purpose of a corporation is to make a profit.
The concern for Amelia will be the fact that a corporation is highly regulated. It's usually monitored by government agencies. There are also <em>regulations</em> that are put in place in order to protect the rights of employees. Therefore, this may be a challenge for Amelia since she may not have the freedom like that of a sole proprietor.
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