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)

Question

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.

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

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

Answer 1

The valid concern that Amelia might have is:

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

Incorporating a business often involves more regulatory requirements, such as more extensive record-keeping, compliance with corporate laws, and possible additional taxes. The other options presented are not typically valid concerns regarding incorporation. For example:

• A corporation can last beyond the owner's involvement, as it is a separate legal entity.
• Incorporating usually limits liability, rather than increasing it.
• Acquiring financing may actually be easier for a corporation due to a perceived level of stability and legitimacy.