Which of the following is NOT an advantage of a C corporation?

A C corporation indeed has several advantages that enhance its appeal for business operations, but simplicity in operation is not typically one of those advantages. C corporations are characterized by a complex structure that involves more extensive regulatory requirements, including the need to adhere to corporate formalities, maintain thorough records, and conduct regular board meetings.

The formation of a C corporation also requires compliance with various federal and state laws, and the tax situation can be complex due to double taxation—taxing profits at the corporate level and again at the shareholder level when dividends are distributed. This complexity stands in stark contrast to simpler business entities such as sole proprietorships or partnerships, which require less formal management structures and fewer compliance obligations.

In contrast to the other options, the transfer of ownership through stock enables easier buy-sell arrangements and continuity of existence, limited liability protects shareholders from debts and liabilities beyond their investment amount, and availability of capital resources allows for raising funds through stock sales and attracting a broader range of investors. These features highlight the significant benefits that C corporations provide, whereas operational simplicity is not one of them.