Which of the Following Is Not an Advantage of the Corporate

question 113

Multiple Choice

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

• A)Limited liability of stockholders
• B)Transferability of ownership
• C)Unlimited personal liability for stockholders
• D)Unlimited life

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Definitions:

Negligent Performance

An inadequate or unsatisfactory execution of tasks or duties resulting from a failure to exercise the appropriate care or skill.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another, often applicable in trustee-beneficiary and advisor-client relationships.

Breach

An act of breaking or failing to observe a law, agreement, or code of conduct.

Principal's Termination

The end of an agency relationship by the decision of the principal, who is the individual or entity that has empowered another to act on their behalf.