What disadvantage is associated with corporations?

Corporations have the disadvantage of being expensive to start. This is largely due to the complex legal requirements and costs associated with forming a corporation, such as filing fees, legal fees for drafting articles of incorporation, and ongoing compliance costs. Corporations must also adhere to specific regulatory requirements, which can further increase initial and operational costs. This financial burden can be a significant barrier to entry for entrepreneurs looking to start a business.

On the other hand, the other options are not typically true of corporations. For instance, having only one owner is more characteristic of sole proprietorships, whereas corporations can have multiple shareholders. Corporations are often seen as more challenging to terminate than other business structures due to the legal procedures involved in dissolving a company. Finally, one of the key advantages of a corporation is limited liability, meaning that the personal assets of the owners are protected from the corporation's debts and obligations. This makes the corporation structure attractive for individuals looking to minimize personal financial risk.