Which of the Following Is Not an Advantage of the Corporate

question 109

Multiple Choice

Which of the following is not an advantage of the corporate structure over proprietorship and partnership forms of business organization?

• A) Stockholders in the corporation have limited liability, whereas proprietors or partners have unlimited liability.
• B) Ownership rights of a corporation may be transferred more easily.
• C) Large investment funds are more easily attracted by the corporation.
• D) Corporations are less likely to suffer from the principal-agent problem.

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Definitions:

Inferiority

A feeling of being lower in status or quality than others, often leading to a lack of self-esteem.

Independent View

A perspective emphasizing the importance of individuality and self-reliance.

Interdependent View

A perspective that emphasizes the interconnectedness and reliance of individuals within a group or society.

Cultural Concept

Ideas or beliefs shared among a group of people which influence behaviors, values, and norms within their society.