The Primary Advantage of the Proprietor Form of Business Over

question 119

Multiple Choice

The primary advantage of the proprietor form of business over the corporate form is :

• A)ease of raising capital (money.)
• B)avoidance of double taxation.
• C)unlimited life.
• D)limited liability.

---

Definitions:

Capital Structure

Capital structure refers to the way a corporation finances its assets through a combination of debt, equity, and hybrid securities.

Preferred Stock

A type of corporate ownership that ranks above common stock in terms of asset and earnings claims, typically carrying predetermined dividend payouts.

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation.

Market Price

The rate at which an asset or service is exchanged in a competitive marketplace.