Which of the Following Is a Disadvantage of the Corporate

question 60

Multiple Choice

Which of the following is a disadvantage of the corporate form of business organization?

• A) ease of transferring ownership
• B) difficulty in transferring ownership
• C) limited liability
• D) governmental regulation at both the federal and provincial levels

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Definitions:

Debt Investments

Investments made by purchasing debt instruments, such as bonds, where the investor becomes a creditor to the issuer.

Journal Entries

Recorded transactions in the accounting journal that show the financial activities of a company.

Marketable

Describes assets or securities that can easily be sold or converted into cash without a significant loss in value.

Cash Dividend

A payout from the company's profits, determined by the board of directors, given to certain shareholders as cash.