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:

Tariff

A tax imposed by a government on imported goods to protect domestic industries or raise revenue.

Domestic Market

The market within a country where goods and services are traded domestically.

Trade Restrictions

Government-imposed limitations on the free exchange of goods and services between countries, including quotas, tariffs, and embargoes.

Semiconductor Industry

The semiconductor industry includes companies involved in the design, manufacture, and supply of semiconductors, which are essential components for electronic devices.