Which statement is FALSE considering both advantages and disadvantages of corporations as a legal business organization?
A) Perhaps the greatest advantage of corporations is that their owners (the shareholders) enjoy limited liability—limited to the value of their shares.
B) Legally the corporation continues to exist even if one or more owners cease to be owners.
C) Corporations usually are not as well positioned as proprietorships and partnerships to raise large sums of financial capital.
D) Separation of ownership and control is a disadvantage of the corporate structure; owners and managers may have different incentives.
C
You might also like to view...
What are the three main indicators that make up the Human Development Index?
What will be an ideal response?
If one were to rank the demand curve facing a firm from the least elastic to the most elastic, the ranking would be
a. monopoly, perfectly competitive, monopolistically competitive b. monopoly, monopolistically competitive, perfectly competitive c. perfectly competitive, monopoly, monopolistically competitive d. monopolistically competitive, monopoly, perfectly competitive e. perfectly competitive, monopolistically competitive, monopoly
Bank A has $25,000 in total reserves, and zero excess reserves. The required reserve ratio is 5 percent. Bank A has total deposits of
a. $1,250. b. $25,000. c. $250,000. d. $5,000,000
The federal tax on cigarettes is
A. direct and regressive. B. direct and progressive. C. indirect and regressive. D. indirect and progressive.