Questions: Corporations have all of the following advantages EXCEPT limited liability favorable tax treatment limited legal risk expanded financial capacity

The answer is B: favorable tax treatment.

Explanation for each option:

A. Limited liability: This is a correct advantage of corporations. Shareholders in a corporation are typically only liable for the amount they have invested in the company, meaning their personal assets are protected from the corporation's debts and liabilities.

B. Favorable tax treatment: This is not generally considered an advantage of corporations. In fact, corporations often face double taxation, where the company's profits are taxed at the corporate level and then again at the individual level when dividends are distributed to shareholders.

C. Limited legal risk: This is a correct advantage of corporations. Similar to limited liability, the legal risk for shareholders is limited to their investment in the corporation, protecting their personal assets from legal claims against the corporation.

D. Expanded financial capacity: This is a correct advantage of corporations. Corporations can raise capital more easily than other business forms by issuing stocks and bonds, which allows them to access a larger pool of financial resources for growth and expansion.