Amajor disadvantage of a corporation is the
a. difficulty in transferring ownership.
b. limited life.
c. difficulty in raising capital.
d. double taxation of the corporation s income and of dividends paid to shareholders.

A major disadvantage of a corporation is the double taxation of the corporation's income and of dividends paid to shareholders.
Corporations end up paying taxes twice. The corporation pays tax when it shows a profit. Secondly the corporation pays tax when it pays out dividends to its shareholders.  Sole proprietorships and partnerships are taxed as owners of the business. The owners of a corporation are taxed individually from the corporation. The advantage of this is that the owners of a corporation are not taxed on the corporation's profit. 

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