Which of the Following Is Typically Not a Benefit of Corporations

question 2

Multiple Choice

Which of the following is typically not a benefit of corporations over other organizational forms?

• A) Easier to transfer ownership
• B) Easier to limit an owner's liability for the organization's debt
• C) Easier to raise large amounts of money
• D) Easier to create with few legal fees

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Definitions:

Avalanche

In finance, an avalanche method refers to a strategy of paying off debts by starting with the highest interest rate debt first.

Security Interest

A legal claim or lien on collateral that has been pledged, typically to obtain a loan, ensuring the right to take possession if repayment is not made.

Assigns

In legal terms, refers to the transfer of a property right or title to another person.

Subordinated

A classification of debt that ranks below other debts with regard to claims on assets or earnings.