Which of the following statements regarding the corporate form of business is correct? Multiple Choice Disadvantages are that the business is subject to government regulations and double taxation on its income. One disadvantage is that ownership is easy to transfer. The disadvantages are that generating capital is difficult and that owners have limited liability. All of the other answer choices are correct
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- One of the disadvantages associated with sole proprietorships is that: raising working capital is difficult. acquiring total ownership of the business's finances is not easy. O creating a sole proprietorship is a complicated process. obtaining licenses and permits is difficult. making autonomous business decisions is difficult.Which of the following is true about this statement: "In a sole proprietorship, the owner's personal assets are at risk if the business is not successful." Is this true? a) No, personal assets are protected by sole proprietorship laws. b) Yes, there is no protection for personal assets with sole proprietorships. c) No, personal assets are only at risk with corporations. d) Yes, this is true for all forms of business.One of the following characteristics of a corporation is deemed a disadvantage. Which is it? a. Ownership transfer b. Double Taxation c. Easy Ability to Raise Capital d. Limited Liability Protection e. None of the above.
- The Principal-Agent Problem arises A) because managers have little incentive to work in the interest of shareholders when this means working against their own self-interest. B) because of the separation of ownership and control in a corporation. C) Both A and B D) None of the aboveDo those who are unable or unable to operate under a conventional corporation's limitations have a predisposition toward starting their own business? Is there a reason for this or not?Which of the following statements is CORRECT? a. Most business in the U.S. is conducted by corporations, and corporations' popularity results primarily from their favorable tax treatment. b. Corporations and partnerships have an advantage over proprietorships because a proprietor is exposed to unlimited liability, but the liability of all investors in the other types of businesses is more limited. c. Conflicts can exist between stockholders and managers, but potential conflicts are reduced by the possibility of hostile takeovers. d. A good goal for a firm's management is the maximization of expected EPS. e. For a stock to be in equilibrium, its intrinsic value must be greater than the actual market price.
- Which of the following statements is false concerning forms of businessorganization? a. A corporation has tax advantages over the other forms of businessorganization.b. It is easier for a corporation to raise large sums of money than it isfor a sole proprietorship or partnership.C. A sole proprietorship is an easy type of business to form.d. Owners Of sole proprietorships and partnerships have personalliability for the debts of the business while owners of corporationshave limited legal liability.An advantage of a corporation is that A-They have little government regulation. B-Owners have complete control and don't answer to shareholders. C-Owners have limited liability for debt. D-Owners pay fewer taxes than other businesses.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 regulation
- Which of the following statements is most correct? O Managers who face the threat of hostile takeover are less ikely to pursue policies that maximize shareholder value compared to managers who do not face the threat of hostile takeover. O Because of their size, it is easier for sole proprietorships and partnerships to raise outside capital than it is for a corporation. O Corporations face fewer regulations and taxes relative to sole proprietorship and partnership. O Corporations are taxed more favorably than sole proprietorships. O One advantage to form a corporation is that the owners of the corporations have limited liabilityThe disadvantages are: (Select all the choices that apply.) A. Income to a corporation is subject to double taxation, once at the corporate level and again when received by the owners in the form of a dividend. B. The life of the business usually ends with the death of any of the owners. C. The corporation is more complicated and more expensive to set up than other business entities. D. Corporate liabilities can be passed on to the shareholders, thus making stock ownership primarily the realm of wealthy investors.In the United States, there are three legal categories of firms: sole proprietorships, partnerships, and corporations. Which of the following is an advantage for corporations? O A. Corporations have control by an owner. B. Corporations have no layers of management. Oc. Corporations have no double taxation of income. D. Corporations have greater ability to raise funds. O E. Corporations have unlimited personal liability. Which of the following is a disadvantage for corporations? O A. Corporations have no stockholders. B. Corporations are costly to organize. c. Corporations have no ability to share risk. D. Corporations have unlimited personal liability. O E. Corporations have limited ability to raise funds. O O O O