question 6 (2.5 points) listen which of the following statements is correct? one drawback of forming a…

question 6 (2.5 points) listen which of the following statements is correct? one drawback of forming a corporation is that it generally subjects the firm to additional regulations. one drawback of forming a corporation is that it subjects the firms investors to increased personal liabilities. one advantage of forming a corporation is that it makes it more difficult for the firm to raise capital. one disadvantage of forming a corporation is that it subjects the firms investors to fewer taxes. one disadvantage of forming a corporation is that it is more difficult for the firms investors to transfer their ownership interests. question 7 (2.5 points)

question 6 (2.5 points) listen which of the following statements is correct? one drawback of forming a corporation is that it generally subjects the firm to additional regulations. one drawback of forming a corporation is that it subjects the firms investors to increased personal liabilities. one advantage of forming a corporation is that it makes it more difficult for the firm to raise capital. one disadvantage of forming a corporation is that it subjects the firms investors to fewer taxes. one disadvantage of forming a corporation is that it is more difficult for the firms investors to transfer their ownership interests. question 7 (2.5 points)

Answer

Brief Explanations:

Corporations are subject to more regulations compared to other business forms like sole - proprietorships and partnerships. They have to comply with various legal requirements such as filing annual reports, holding regular board meetings, and following corporate governance rules. Shareholders of corporations have limited liability, so personal liabilities are not increased. Corporations can raise capital more easily through issuing stocks and bonds. Also, they are often subject to double - taxation, not fewer taxes. Transfer of ownership in the form of shares is relatively easy in a corporation.

Answer:

One drawback of forming a corporation is that it generally subjects the firm to additional regulations.