Which Statement Is FALSE Considering Both Advantages and Disadvantages of Corporations

question 14

Multiple Choice

Which statement is FALSE considering both advantages and disadvantages of corporations as a legal business organization?

• A) Perhaps the greatest advantage of corporations is that their owners (the shareholders) enjoy limited liability-limited to the value of their shares.
• B) Legally the corporation continues to exist even if one or more owners cease to be owners.
• C) Corporations usually are not as well positioned as proprietorships and partnerships to raise large sums of financial capital.
• D) Separation of ownership and control is a disadvantage of the corporate structure; owners and managers may have different incentives.

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