One aspect of the corporate form can be considered both an advantage and a disadvantage. What aspect is this, and why can it be considered both?
Limited liability can be considered both an advantage and a disadvantage of the corporate form. Limited liability is an advantage because the owners are not responsible for the corporation's debts. Their liability is limited to the amount of their investment. In contrast, the personal property of sole proprietors and partners generally is available to creditors.
Limited liability can also be a disadvantage because it restricts the ability of a small corporation to borrow money. Because creditors can lay claim only to the assets of a corporation, they may limit their loans to the level secured by those assets or require stockholders to guarantee the loans personally.
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Under the accrual basis of accounting, at what point in time should a fast food restaurant recognize revenue? _________________________
Fill in the blank(s) with correct word
Which of the following must be reported by diversified companies for each of their operating segments?
A) Segment profit or loss, expenses, and earnings per share B) Segment profit or loss, certain revenue and expense items, and segment assets C) Assets, liabilities, and earnings per share D) Segment profit or loss, expenses, and unidentifiable assets
Which of the following statements is an example of a global trend?
A. The Federal Reserve announces that it will decrease the interest rate charged to banks. B. Congress passes legislation that increases the tax rates on corporations. C. A new computer chip is developed that will allow for miniaturization of many electronic devices. D. The European Union declares an increase in tariffs on all agricultural goods.
The AP/CD process is closely linked to functions and processes inside and outside the organization.
Answer the following statement true (T) or false (F)