Which of the Following Is not an Advantage of the Corporate

question 148

Multiple Choice

Which of the following is not an advantage of the corporate form of business organization?

• A)No personal liability
• B)Easy to transfer ownership
• C)Favorable tax treatment
• D)Easy to raise funds

---

Definitions:

Expected Profit

The projected financial gain a company anticipates earning from its operations or investments, based on various assumptions and calculations.

Price

The amount of money required to purchase a good or service.

Marginal Costs

The change in total costs that arises when the quantity produced is incremented by one unit; it is the cost of producing one more unit of a good.

Potential Customers

Individuals or businesses that have not yet purchased but have shown interest in a company's products or services.