Which of the following, if true about the owners' plan for the new business, weakens the case that it should be registered as a C corporation?
A) They want to trade the company's stock publicly.
B) They do not want to put their personal assets at risk.
C) They don't want to have a board of directors or file annual financial reports.
D) They intend to raise capital through the sale of stock.
E) They do not want their shareholders to be taxed.
Answer: C
Explanation: C) A C corporation is required both to have a board and to file annual reports. A C corporation can offer stock (Choice D) and trade it publicly (Choice A). Owners of a C corporation are not liable in their personal assets for the company's debts (Choice B) and its shareholders are not taxed (Choice E).
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