Which of the Following Is an Advantage of Ownership of a Corporation

question 226

Multiple Choice

Which of the following is an advantage of ownership of a corporation compared to that of a sole proprietorship?

• A) The owners of the corporation have unlimited liability for the firm's debts.
• B) It is the simplest to start.
• C) The corporation has an unlimited life.
• D) Dividends received by the corporation's shareholders are tax-exempt.
• E) It is more difficult to transfer ownership in a corporation.

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Definitions:

Investment Opportunity

A potential financial investment that could generate a return or gain.

Manufacturing Cycle Efficiency (MCE)

Process (value-added) time as a percentage of throughput time.

Division's Margin

The profit generated by a specific division within a company after direct costs and expenses attributable to that division are subtracted.

ROI

Return on Investment, a performance measure used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.