An important problem with corporations is A the inability of

An important problem with corporations is

A. the inability of the government to control and tax the firms.

B. the possibility of large liabilities for the owners.

C. the separation of ownership and control.

D. the difficulties with raising financial capital

Solution

Ans: the separation of ownership and control

Explanation:

A corporation is made up of two organs, i.e., the board of directors and its shareholders. One of the major problem complicacy in the decision making which will take longer time to take a decision. If the shareholders are not happy with the board of directors, they can elect new board of directors. This type of situation creates a longer time in decision making.