Question

Amelia has laid the groundwork for a fledgling business and is considering incorporating. Which of the following

Answer 1

Answer:

C) The regulations will be more burdensome than in other business structures.

Explanation:

Answer 2

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 single entity. A corporation is a legal entity and is distinct from its owners.

It should be noted that under law, corporations 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 regulations 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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