Which of the Following Characteristics Is an Advantage of the Company

question 3

Multiple Choice

Which of the following characteristics is an advantage of the company form of business?

• A)The potential to raise large amounts of capital
• B)Company taxation
• C)Separation of ownership and management
• D)Higher degree of government regulation

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Definitions:

Future Payment

A payment that is scheduled to be made at a specified date in the future.

Interest Rate

The cost of borrowing money, usually expressed as a percentage of the amount borrowed.

Net Earnings

The amount of income left after deducting all expenses, taxes, and costs from gross revenue.

Continuous Future

A futures contract that amalgamates several expiry contracts to create a continuous, extended trading period for investors.