Which of the Following Is a Disadvantage of a Corporation

question 75

Multiple Choice

Which of the following is a disadvantage of a corporation?

• A)Lack of regulatory controls
• B)Unlimited liability
• C)Absence of perpetual life
• D)Employee-owner separation
• E)Lack of expansion potential

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Definitions:

Evaluative Group

A group used as a reference point for assessing or making judgments about something or someone.

Formal Organizations

Secondary groups designed to achieve explicit objectives.

Secondary Groups

Social groups characterized by impersonal, formal, and instrumental relationships, often focused on a specific goal or task.

Explicit Objectives

Clearly defined goals or purposes that an organization or individual aims to achieve.