Which statement is FALSE considering both advantages and disadvantages of corporations as a legal business organization?
A. Corporations usually are not as well positioned as proprietorships and partnerships to raise large sums of financial capital.
B. Perhaps the greatest advantage of corporations is that their owners (the shareholders) enjoy limited liability-limited to the value of their shares.
C. Separation of ownership and control is a disadvantage of the corporate structure; owners and managers may have different incentives.
D. Legally the corporation continues to exist even if one or more owners cease to be owners.
Answer: A
You might also like to view...
What are the two main antitrust laws and when were they enacted?
What will be an ideal response?
Economists mostly agree that the problem of climate change necessitates government action in the form of market-based incentives such as
What will be an ideal response?
Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Mr. Lingle's budget constraint is AC. His choice set is all points
A. along budget constraint AC. B. along the vertical and horizontal axes. C. to the right of budget constraint AC. D. in the area bounded by OAC.
When a shift in aggregate demand occurs, the effect will be divided between a change in output and a change in price level. How the effect is divided depends on the
a. amount of inflation in the economy. b. slope of the SRAS curve. c. size of the multiplier. d. position of the AE curve. e. slope of the AD curve.