plz help Following is a list of advantages and disadvantages of the corporate form of business. Identify each quality as either an advantage or a disadvantage.a. Ownership and management are separated.b. Entity has continuous life.c. Transfer of ownershipteasy.d. Stockholders' liability is limited.e. Exposure to double taxation is evident.f. Entity can raise more money than a partnership or soleproprietorship.g. Government regulation is expensive.

a. Ownership and management are separated. Disadvantage: In the corporate form of business,…

Answered: Following is a list of advantages and…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 16DQ

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What is a disadvantage of the corporate form? Profit O Revenue Owners have very little influence on business decisions O Limited liability
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
Identifying advantages and disadvantages of a corporation Following is a list of advantages and disadvantages of the corporate form of business. Identify each quality as either an advantage or a disadvantage. Ownership and management are separated. The entity has a continuous life. Transfer of ownership is easy. Stockholders’ liability is limited. Exposure to double taxation is evident. The entity can raise more money than a partnership or sole proprietorship. Government regulation is expensive.
Advantages of the corporate form of business, over other forms, include all of the following except: O Lower costs of separation of owners from managers, or so-called "agency costs." O Greater ease of raising capital. O Limited liability of the shareholders for corporate misdeeds. O Greater liquidity of ownership interests. O Greater ability to hire talented management.
1. Many businesses are set up as limited companies. These are owned by shareholders and run by the board of directors. Which of the following are disadvantages of limited company status? a) The impression of a soundly based business organisation (though incorporation does not guarantee reliability or respectability) b) Easier to raise capital c) Must comply with legal and regulatory requirements d) Shareholders’ liability for any losses is limited to the amount of their investment in the company 1.1 A loan repayment to a bank would be recorded in the nominal ledger as: a) Dr Bank Cr Capital b) Dr Loan Cr Bank c) Dr Loan Cr Bank d) Dr Bank Cr Reserves
Which of the following characteristics is an advantage of the corporate form of business? a. Separation of ownership and management b. Higher degree of government regulation c. The potential to raise large amounts of capital d. Double taxation
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 one of the following is the least likely reason a company may acquire an ownership interest in another company? Select one: a.To benefit form an overvaluing of assets in the investee company b. To oust an inefficient management team c. To take advantage of operating and/or cost synergies d. To exercise an active role in the business' activities
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 above
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.
Agency problems are said to be inherent in the corporate form of an organization. Why do you think this is the case?Do you think agency problems arise in a sole proprietorship or a partnership?What steps would you take to reduce agency problems in a so-called typical corporation?
Economic consequences of accounting standard-setting means:a. standard-setters must give fi rst priority to ensuring that companies do not suffer any adverseeffect as a result of a new standard.b. standard-setters must ensure that no new costs are incurred when a new standard is issued.c. the objective of financial reporting should be politically motivated to ensure acceptance by thegeneral public.d. accounting standards can have detrimental impacts on the wealth levels of the providers of financialinformation.

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