Which of the Following Is a Disadvantage of Setting Up

question 110

Multiple Choice

Which of the following is a disadvantage of setting up a business as a corporation?

• A) Limited personal liability
• B) Greater ability to get funds
• C) Limited control by owners
• D) Risk of personal assets not invested in the firm

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Definitions:

Value Chain

The full range of activities that businesses go through to bring a product or service from its conception to its end use by consumers.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the product.

Cost of Goods Manufactured

The total cost of all materials, labor, and overhead used to produce goods during a specific period.

Cost of Goods Purchased

The total expense incurred by a company to buy the goods it has sold or will sell, excluding any indirect costs.