Which of the Following Statements Is NOT Considered a Disadvantage

question 100

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 shareholders
• D) separation of ownership and management

---

Definitions:

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost determination.

Operating Expenses

Recurring expenses related to the core operations of a business, excluding the cost of goods sold, such as rent, utilities, and salaries.

Net Income

The net income a business generates once all costs and taxes are deducted from its total revenue.

Units Sold

The total quantity of products sold within a specific timeframe.