Which of the Following Is an Advantage of Using a Company

question 37

Multiple Choice

Which of the following is an advantage of using a company as a business structure?

• A)Shareholders have limited liability for the debts of the company.
• B)Reporting requirements are minimal.
• C)Directors have limited liability for the actions of the company.
• D)Low establishment cost and ongoing fees.

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Definitions:

Maximize Joint Profits

A strategy where entities collaborate to enhance their combined earnings rather than competing against each other.

Incentive to Cheat

The motivation or factor that encourages individuals or entities to act dishonestly or unethically for personal gain.

Cartel

An agreement among competing firms to control prices, production, and market shares, often to maximize collective profits by reducing competition.

Organization of Sellers

A collective or group of sellers or producers that aims to promote common interests, often including market and price controls.