Amelia has laid the groundwork for a fledgling business and is considering incorporating. Which of the following is a valid concern that she might have?(1 point)

Responses

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

The corporation will only last as long as she is able to work.
The corporation will only last as long as she is able to work.

Acquiring financing as a corporation will be much more challenging than it is for other business structures.
Acquiring financing as a corporation will be much more challenging than it is for other business structures.

Incorporating comes with an increase in liability compared to other business structures.

1 answer

The valid concern that Amelia might have is:

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

Incorporating a business involves adhering to various legal requirements, including more complex regulations compared to sole proprietorships or partnerships. This concern is legitimate as it can impact her time, resources, and overall business operations.

The other options contain inaccuracies:

  • Corporations can exist independently of the owner's ability to work, as they are separate legal entities.
  • Acquiring financing can actually be easier for corporations due to their ability to issue shares and generally having more credibility.
  • Incorporating typically reduces personal liability rather than increasing it.