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Why do you think a single WACC is not applicable to all businesses in a corporation?
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- Do those who are unable or unable to operate under a conventional corporation's limitations have a predisposition toward starting their own business? Is there a reason for this or not?What are some reasons why the value of a business other than a small one is generallymaximized when it is organized as a corporation?What limitations are S-corporations subject to?
- A corporation is a business that is legally separate and distinct from its owners. True False ہےAgency 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?How does the Model Business Corporation Act affect the way corporations operate?
- Which characteristic of a corporation is a disadvantage? a. Mutual agency b. Double taxation c. Limited liability d. None are disadvantages.What advantages does a corporation have over a sole proprietorship? Whatare the disadvantages of a corporation?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 characteristics best describes a corporation? a. A business with a single owner b. Is not taxed c. Stockholders not personally liable for entity’s debts d. Not a separate taxable entityWhich of the following is not something that corporations can do with their profits? a. Pay income tax to the government b. They can do all of these. c. Pay them to shareholders d. Hold profits within the firmWhat would happen to the corporation if it failed to file by-laws? Would it dissolve the corporation?