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- Which of the following is a disadvantage of the corporate form of organization? difficulty in raising capital unlimited liability of the owners finite life of the organization the tax treatment of dividendsWhat is a disadvantage of the corporate form? Profit O Revenue Owners have very little influence on business decisions O Limited liabilityThe advantages of owning a corporation include a. Difficulty in transferring ownership. b. Limited liability. c. Lower taxes. d. Less paperwork.
- Which of the following is the disadvantage of setting up a "Corporation"? Double taxation and limited capital Double taxation and agency problem Illiquidity and agency problem Illiquidity and double taxationWhich characteristic of a corporation is a disadvantage? a. Mutual agency b. Double taxation c. Limited liability d. None are disadvantages.M&M Proposition II, without taxes, puts forth that, Multiple Choice the capital structure of a company has no effect on that company's value.
- Some advantages of obtaining control by acquiring a controlling interest in stock include all but: O The cost may be lower since only a controlling interest in the assets, not the total assets, is acquired. O The legal liability of each corporation is limited to its own assets. O Negotiations are made directly with the acquiree's management. O Tax advantages may result from preservation of the legal entities.Which of the following is not an advantage of the corporate form of business? a. limited liability b. easy transferability of shares c. enhanced ability to raise capital d. lack of government regulationWhich of the following does not make it easier for corporation to raise capital? a) limited liability b) double taxation c) perpetual existence d) frww transferability
- 3. Which of the following would be considered an advantage of the sole proprietorship form of organization? unlimited liability wide access to capital markets profits taxed at only one level a pool of expertiseWhich of the following is not a characteristic of a corporation? a.Corporations experience an ease in obtaining large amounts of resources by issuing stock. b.Corporations are organized as a separate legal taxable entity. c.Ownership is divided into shares of stock. d.A corporation's resources are limited to its individual owners' resources.A corporation cannot survive if the original owners are the only ones to invest in terms of equty financing. In short, external shareholders are always necessary. Group of answer choices True False
