Which of the Following Is NOT an Advantage of the Corporate

question 145

Multiple Choice

Which of the following is NOT an advantage of the corporate form of organization?

• A) continuity
• B) professional management
• C) limited liability
• D) low startup costs

---

Definitions:

Equivalent Units

A measure used in cost accounting to express the amount of materials or labor consumed in terms of fully completed units.

Cost Per Unit

The total expense incurred to produce, store, and sell one unit of a product, considering all direct and indirect costs.

Conversion Cost

The total cost of converting raw materials into finished products, combining both direct labor and manufacturing overhead.

Equivalent Units

A measure used in cost accounting to express the amount of work done by incomplete units in terms of fully completed units.