46. Which of the following is not one of the advantages of organizing a business as a corporatiot a. 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.

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

26. The advantages of an LLC include all of the following except: A. Members are protected from personal liability for business decisions B. Sharing of profits C. Up to the members to decide who has earned what percentage of the profits or losses D. Entire net income of the LLC is subject to taxes E. Less record keeping compared to a Corporation