Which of the Following Is a Disadvantage of the Corporation

question 110

Multiple Choice

Which of the following is a disadvantage of the corporation compared to the sole proprietorship?

• A)limited liability
• B)difficulty raising start-up money
• C)lack of profitability
• D)corporate income is taxed twice
• E)corporations are more vulnerable in the case of the death of an owner

Know the historical events that have shaped federal fiscal policy.

Describe unfunded mandates and their impact on state and local governments.

Understand the innate aspects of human cognition related to social categorization and individual consideration.

Comprehend how self-fulfilling prophecies operate within educational and social contexts.

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Definitions:

Financial Break-Even

The point at which revenues equal expenses and neither profit nor loss is realized.

Required Rate

Also known as the Required Rate of Return, it is the minimum annual percentage return an investor expects to achieve from an investment.

Discounted Payback

The period of time required to recoup the cost of an investment considering the time value of money through discounted cash flows.

Financial Basis

The underlying value or criteria used for accounting or financial management purposes, often referred to as the method of recognizing revenues and expenses.