Which Is Not an Advantage of Corporations

question 40

Multiple Choice

Which is not an advantage of corporations?

• A) Limited liability
• B) Longevity and permanence
• C) More likely to earn higher profits
• D) Ease of attracting investors

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Definitions:

Credit Risks

This is the risk that a borrower will default on any type of debt by failing to make required payments, impacting lenders and investors.

Credit Analysis

The process of evaluating an applicant's loan request or a corporation's debt issue in order to determine the likelihood of the borrower repaying the loan.

Financial Statement

A written report which quantitatively describes the financial health of a company.

Commercial Paper

An unsecured, short-term debt instrument issued by a company, typically for the financing of accounts receivable, inventories and meeting short-term liabilities.