Which of the Following Is Not a Disadvantage of the Corporate

question 220

Multiple Choice

Which of the following is not a disadvantage of the corporate form of ownership?

• A) Difficulty of formation
• B) Limited liability
• C) Expense of incorporation and selling stock
• D) Lack of secrecy
• E) Double taxation

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Definitions:

Bureaucratic Organization

A type of organizational structure characterized by strict procedures, hierarchical relationships, and detailed rules and guidelines to ensure consistency and control.

Rational Structure

An organizational design that emphasizes a well-defined hierarchy, clear roles, and formal procedures and guidelines.

Formal Authority

Refers to the power granted to an individual or a position through organizational structures and official job descriptions.

Mechanistic Designs

Organizational structures characterized by clear hierarchies, rigid departments, and strict adherence to rules, enhancing efficiency in stable environments.