Decide which of the following statements are true. I. In most circumstances, the owners of corporations enjoy reduced liability, increased liquidity and greater growth potential than owners of other forms of business.
Q: DEBT MAY BE BENEFICIAL IN CORPORATE GOVERNANCE FOR THE FOLLOWING REASONS EXCEPT: Select one: O a.…
A: CORPORATE GOVERNANCE: These are the rules the firm need to follow and through which firms are…
Q: Which of the following is a disadvantage of the corporate form of business? Select one: O a.…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Identifying advantages and disadvantages of a corporation Following is a list of advantages and…
A:
Q: 3) The ultimate financial goal of a corporation is to: A) minimize stockholder risk. B) maximize…
A: Answer to Question 3: Correct Option is (C). Maximize the value of the corporation to the…
Q: Why are so many businesses structured as sole proprietorships when the corporate form of business…
A: A sole proprietorship refers to the sole individual entrepreneurship that is run by one person who…
Q: What are some reasons why the value of a business other than a small one is generallymaximized when…
A: A corporation is a lawful entity working independent and separated from its proprietors. It can…
Q: How can a small-business owner or corporate manager use financial leverage to improve the firm’s…
A: A business decides its capital structure in a way that gives less cost of capital.
Q: Which of the following is not an advantage of the corporate form of business organization? a)…
A: Introduction:- Corporation is a Legal entity. Shareholders are the owners of the organisation.
Q: Using profit as the sole guide for corporate action can lead to short term profits but: B a.)…
A: Business may earn initially from customer by charging higher price but in long run the customer will…
Q: starting a business, is it okay to start with having debt during the early stages? What dictates the
A: Answer A company needs a financial capital to operate its business. For that many companies,…
Q: managers speak as if the corporation has other goals. For example, they may say that their job is to…
A: Shareholder wealth maximization is the goal to maximize the market value of the firm and thus…
Q: Which of the following is an advantage of a sole trader as a form of business organisation? Select…
A: Sole proprietor is the only owner of the business and all the expenses and profit belongs only to…
Q: Explain common forms of business ownership—sole proprietorship, partnership, and corporation—and…
A: A sole-proprietorship is one that has one owner who has unlimited liability for the business. A…
Q: Why would it be desirable to switch from an S corporation to C corporation once the business is…
A: S Corporation: it is the special tax status which is assigned to small corporations. S corporation…
Q: This type of business enjoys the benefits of big companies but without having to pay taxes and other…
A: Limited liability Company: Limited liability is a partnership in which some or all of the partners…
Q: Equity is the Amount of a company's capital is owned by the shareholders. In sole proprietorship and…
A: solution concept In a balance sheet of company There is asset , liabilities and equity Equity means…
Q: Identifying advantages and disadvantages of a corporation Following is a list of advantages and…
A: Corporation: The form of business entity ,which is incorporated by state law into a separate legal…
Q: In financial analysis there is a possibility that business opportunities for growth will be…
A: Financial analysis is the analysis of the business in order to assess the profitability, stability…
Q: Which of the following statements is CORRECT? Select one:
A: The question involves the Concept of Agency and its related problems. It is established between two…
Q: Sumarise the advantages and dis advantages of corporation which features contribute to the dominance…
A: Corporation is form of organization under which the owners are carrying separate entity from the…
Q: Identify which of the following statements are true for the corporate form of organization. (You may…
A: A corporation is a legal entity that is different from its owners and exists independently from…
Q: Identify whether each of the following scenario is an advantage or a disadvantage of the corporate…
A: Advantages to the corporate business refers to the strengths which help in wealth maximization of…
Q: Setting up a business as a corporation has the following benefits a) Separation of ownership…
A: Setting up corporation has the following benefits: 1. Separation of ownership and management:…
Q: Which of the following statements is true? a. Restrictive covenants in debt agreements are an…
A: A business is an organization entirely made for earning profits or for fulfilling social needs by…
Q: 4. Which of the following is not an advantage of the corporate form of business organization? A.…
A: Lets understand the basics. Corporate form of organizations are different as compare to sole trade…
Q: Which of the following is a disadvantage of the corporate form of organization? difficulty in…
A: The corporate form of organization might pay corporate income taxes on their earnings which is…
Q: Should companies retain dividends in the firm to protect employment and investments?
A: Retaining dividend is a part of the profit that is not given to the shareholder in fact it is held…
Q: Write T or F. Then briefly explain. 1. Shareholders can transact business on behalf of the…
A: 1. Shareholders can transact business on behalf of the corporation. Answer: False. A…
Q: Which type of business will most likely have problems with insufficient funds for business? Sole…
A: Partnership is an arrangement by two or more parties to manage and operate a business and share its…
Q: Ryan Gosling wants to start a new business and has a question: "Which form of business is subject to…
A:
Q: Many businesses are set up as limited companies. These are owned by shareholders and run by the…
A: Limited company means company limited by shares.
Q: The cost of equity is the rate associated with what the shareholders expect the corporation to earn…
A: Equity refers to the amount contributed by the owners of a entity i.e. shareholders of a entity.
Q: Which of the following is the primary element that distinguishes accounting for corporations from…
A: A partnership firm is a constitution wherein two or more individuals come together and join hands to…
Q: A. Identify whether each of the following scenario is an advantage or a disadvantage of the…
A: We know that corporate has a seperate legal entity from its members, board is accountable to the…
Q: Advantages of the corporate form of business, over other forms, include all of the following except:…
A: A business organization is defined as an entity that is being incorporated with the aim to carry on…
Q: Which of the following factors reflect pure market risk for a given corporation?a. Increased…
A: Market risk is also known as systematic risk, it cannot be eliminated completely. The impact of…
Q: Identify whether each of the following scenario is an advantage or a disadvantage of the corporate…
A: The answer for the practical question is discussed hereunder : Corporate form of business came into…
Q: For what reason do corporations retain earnings in the business?
A: Retained earnings: Retained earnings are that portion of profits which are earned by a company but…
Q: Which of the following is not an advantage of the corporate form of business? a. limited liability…
A: Corporate is a popular form of business for the large and small industry. These types of business…
Q: What should be the primary goal of a corporation?
A: Corporation: It refers to a large company considered as an individual entity and recognized in law.
Q: Which one of the following statements is TRUE? a. Creditors have a claim on a firm's earning…
A: Charter is a legal document that contain details of the governance, structure, objectives and other…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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 regulationWhich of the following is the primary element that distinguishes accounting for corporations from accounting for partnerships? a. The corporation draws a sharper distinction in accounting for sources of capital. b. The entity theory relates primarily to the other forms of business organization. c. In a corporation, retained earnings may be reduced only by the declaration of dividends. d. Generally accepted accounting principles apply to corporations but have relatively little applicability to other forms of business organizations.Identify each of the following characteristics as being an advantage, a disadvantage, or not applicable to the corporate form of business organization. 1. Separate legal entity 2. Taxable entity resulting in additional taxes 3. Continuous life 4. Unlimited liability of owners 5. Government regulation 6. Separation of ownership and management 7. Ability to acquire capital 8. Ease of transfer of ownership
- 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.Which of this statement shows the advantage to form a corporation? Select one: a. Owner must absorb all losses b. Ability to raise large amounts of capital is increased c. Control of corporation not guaranteed by partial ownership of stock d. Business terminates immediately upon death of ownerIdentifying 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. a. Ownership and management are separated. b. Entity has continuous life. c. Transfer of ownership is easy. d. Stockholders’ liability is limited. e. Exposure to double taxation is evident. f. Entity can raise more money than a partnership or sole proprietorship. g. Government regulation is expensive.
- 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.What is a disadvantage of the corporate form? Profit O Revenue Owners have very little influence on business decisions O Limited liabilityTrue or false: The corporation, and not the owners, are viewed as owning the resources and as owing the debts of the business. O True O False
- 46. Which of the following is not one of the advantages of organizing a business as a corporation? The ability to raise capital is perhaps easiest when organized as a corporation. b. The dividends paid to owners of a corporation are exempt from federal, state, and local taxes. c. The liability of owners of a corporation is limited to the amount they invested in the business. d. Transferring ownership of a business is by far the easiest within the corporate form of business organization. a. ftho following is an example of a direct cost an organization might incur in producing a proWhich of the following characteristics distinguish a corporation from other forms of businesses? I. Centralization of management II. Continuity of life III. Free transferability of ownership interests IV. Limited liability V. Profit motive Oa. Statements I, II, IV, and V are correct. Ob. Statements IV and V are correct. Oc. Statements I, II, III, and IV are correct., Od. All are distinguishing characteristics. Oe. Only statement III is correct.Which of the following is not an advantage of the corporate form of business organization? a) unlimited life b) transferability of ownership c) limited liabilitiy of stockholders d) unlimited personal. liability for stockholders