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

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Definitions:

Franchisee

An individual or entity that purchases the right to operate a business under the franchisor's brand name and business model.

Franchisor

A business entity that grants the right to an individual or group to carry out commercial activities using its brand and model.

Potential Liability

The possibility of incurring legal obligations or debts in the future as a result of current actions, decisions, or circumstances.

Degree of Control

The extent of influence or authority an entity has over its operations, processes, or decisions.