Which of the Following Is Not an Advantage of the Corporate

question 109

Multiple Choice

Which of the following is not an advantage of the corporate structure over proprietorship and partnership forms of business organization?

• A) Stockholders in the corporation have limited liability, whereas proprietors or partners have unlimited liability.
• B) Ownership rights of a corporation may be transferred more easily.
• C) Large investment funds are more easily attracted by the corporation.
• D) Corporations are less likely to suffer from the principal-agent problem.

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Definitions:

Information Technologies

The study and use of systems for storing, retrieving, and sending information, including computers and telecommunications.

Collaborate

To work jointly with others or together especially in an intellectual endeavor.

Self-managed Teams

Groups of employees who operate without traditional managerial supervision, taking collective responsibility for task planning, decision making, and problem-solving.

Managerial Levels

Refers to the distinct layers of management within an organization, often categorized as top, middle, and lower or operational levels.