Which of the Following Statements Is Not Considered a Disadvantage

question 61

Multiple Choice

Which of the following statements is not considered a disadvantage of the corporate form of organization?

• A) Additional taxes
• B) Government regulations
• C) Limited liability of stockholders
• D) Separation of ownership and management

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Definitions:

EPS

Earnings Per Share represents the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Breakeven Volume

The number of units that must be sold at a given price to cover all costs, with no profit or loss.

Variable Costs

Costs that change in proportion to the level of output or activity in a business.

Fixed Costs

Rent, salaries, and insurance charges are examples of expenses that are unaffected by changes in production or sales volumes.