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Corporations often face disadvantages such as double taxation, where both the company and its shareholders pay taxes on profits. They can also have more complex regulatory requirements and administrative burdens compared to sole proprietorships or partnerships. Additionally, decision-making can be slower due to the need for consensus among a board of directors and shareholders, which may hinder responsiveness to market changes. Lastly, corporations may experience a loss of personal touch with customers, as they tend to prioritize profit over relationships.
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What are the legal form of business?
There are several different legal forms of a business. One can form a corporation, limited liability corporation, partnership, or sole proprietorship. All of them have advantages and disadvantages.
What are the Disadvantages of LTD's?
One disadvantage of a LTD is that they would have to pay Corporation tax on top of any existing taxes.
What is revocation of a corporation mean?
It means that some governing body, city, state, or federal has taken away a corporations right to be a corporation. The business may possibly continue in some other form such as a limited liability corporation or sole proprietor but can no longer be a corporation.
What is a Closed corporation?
A close corporation refers to a corporation that has been exempted from some of the formal rules that govern corporations. They are usually exempted from these rules because of the small number of shareholders that they have.
Can a corporation be a partner in another corporation?
A partnership is a different legal entity than a corporation. Therefore, literally speaking a corporation cannot be a partner in another corporation because corporations don't have partners. A corporation can be a security holder in another corporation. For example, a corporation that owns all of another corporation would be the "parent company," and the owned corporation would be a "wholly-owned subsidiary."Please note, at least here in the US, two corporations can form a partnership and it is not limited to actual people. There are some situations when this is advantageous over just forming a joint venture.
Advantages and disadvantages of corporation?
Advantages of corporation include protected assets and heightened credibility. Disadvantages include loss of a personal touch, and ongoing expenses.
Corporation advantages and disadvantages?
An advantage to having a corporation is limited liability. A disadvantage to having a corporation is the fact that income is taxed twice.
Advantages or disadvantages a trendy new high-tech corporation?
Advantages of a trendy high-tech corporation are that it would be at the forefront of the business world, giving clients access to the most up-to-date changes in the industry. Disadvantages could be that the corporation may be limited in its ability to evolve and may become irrelevant.
What are the disadvantages of bonds?
To have a bond is to loan money to the issuing corporation. Some risk may occur in having bonds. These are the Inflation risk, liquidity risk and the lower returns.
What are the Disadvantages of sub-chapter s corporation?
Some disadvantages of a subchapter S corporation include restrictions on the number and types of shareholders, limitations on issuing different classes of stock, and potential limitations on deductibility of losses for shareholders. Additionally, S corporations require more administrative formalities and may have higher tax compliance costs compared to other business structures.
What are the corporation advantages and disadvantages?
Disadvantages Resources are limited financing available for growth is not sufficent Advantages Resources areused efficently adopts new tehhnologies quickly
What are the advantages disadvantages of corporation?
Disadvantages Resources are limited financing available for growth is not sufficent Advantages Resources areused efficently adopts new tehhnologies quickly
What are the advantages and disadvantages of multinational corporation?
Disadvantages Resources are limited financing available for growth is not sufficent Advantages Resources areused efficently adopts new tehhnologies quickly
What are the legal form of business?
There are several different legal forms of a business. One can form a corporation, limited liability corporation, partnership, or sole proprietorship. All of them have advantages and disadvantages.
What are the advantages and disadvantages of modern corporation?
One advantage to having a modern corporation is the fact that they can better manage their costs and employees based on information from research. A disadvantage to having a modern corporation is the fact that they generally aren't socially responsible.
What are disadvantages and disadvantages of autocracy?
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What are the Disadvantages of LTD's?
One disadvantage of a LTD is that they would have to pay Corporation tax on top of any existing taxes.
