The Ability of a Corporation to Obtain Capital Is

question 194

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 partnership.

---

Definitions:

Uninsurable Risks

refers to risks that insurance companies are unwilling to cover due to their unpredictable or potentially catastrophic nature.

Entrepreneur

A person who organizes, operates, and assumes the risk for a business venture, often introducing new products, services, or business processes.

Short-Term Loans

Financial borrowing intended to be repaid within a short period, usually less than a year.