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:

Business Models

Frameworks that describe how a company creates, delivers, and captures value, essentially outlining the way it operates and makes money.

Attitudes

A mental inclination demonstrated through assessing a specific entity positively or negatively.

Sources

The origins or provenances from which something comes, such as information, funding, or materials.

Affective Events Theory

A psychological model that explains how work events trigger emotions, which can influence employee job performance and satisfaction.