Which One of the Following Would Not Be Considered an Advantage

question 86

Multiple Choice

Which one of the following would not be considered an advantage of the corporate form of organization?

• A) Government regulation
• B) Separate legal existence
• C) Continuous life
• D) Limited liability of stockholders

---

Definitions:

Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity used to finance a company's assets.

Total Asset Turnover

A financial metric that measures a company's efficiency in using its assets to generate revenue.

Stretching Payables

Extending the period to pay bills as long as possible without incurring penalties, to improve short-term liquidity.

Current Liabilities

Current liabilities are a company's debts or obligations that are due to be paid to creditors within one year.