Which of the Following Is NOT Considered to Be an Advantage

question 71

Multiple Choice

Which of the following is NOT considered to be an advantage of forming a corporation?

• A)continuous life
• B)government regulation
• C)ability to raise more capital than a partnership or proprietorship
• D)limited liability of stockholders for corporation's debts

---

Definitions:

Average Collection Period

Refers to the average number of days it takes for a business to receive payments owed by its customers after a sale has been made on credit.

Inventory Turnover

A ratio that measures the number of times inventory is sold or used over a period, indicating the efficiency of inventory management.

Average Sale Period

This measure indicates the average duration it takes for a company to turn its inventory into sales.

Operating Cycle

The duration of time from the acquisition of inventory to the collection of cash from receivables, reflecting the company's efficiency in using its assets.