The Ability of a Corporation to Obtain Capital Is

question 27

Multiple Choice

The ability of a corporation to obtain capital is

• A)enhanced because of limited liability and ease of share transferability.
• B)less than a partnership.
• C)restricted because of the limited life of the corporation.
• D)about the same as a proprietorship.

---

Definitions:

Machine-Hours

A measurement of the amount of time a machine is operated, used in allocating costs or determining production levels.

Molding

The process of shaping a pliable raw material by using a rigid frame or model called a mold.

Assembly

The process of putting together various components or pieces to build a finished product.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to estimate the cost of manufacturing overhead for a specific activity base.