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.

---

Definitions:

Classical-Conditioning Principles

The psychological mechanisms and rules through which organisms learn to associate stimuli and anticipate events, based on the work of Ivan Pavlov.

Frank

Open, honest, and direct in speech or writing, especially when dealing with unpalatable matters.

Jellyfish

Aquatic animals belonging to the phylum Cnidaria, known for their gelatinous, umbrella-shaped bodies and trailing tentacles.

Overtime Pay

Additional compensation provided to employees who work beyond the standard work hours as defined by law or contract.