Which of the Following Is Not an Advantage of the Corporate

question 21

Multiple Choice

Which of the following is not an advantage of the corporate form of ownership?

• A)Limited liability for the owners.
• B)It is the easiest and least expensive form of ownership to create.
• C)Easy transfer of ownership.
• D)Perpetual life.

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Definitions:

Consolidated Retained Earnings

The cumulative amount of earnings not distributed as dividends to shareholders, reported in the consolidated financial statements of a parent company and its subsidiaries.

Business Combination

A transaction or event where an acquirer gains control over one or more businesses, often through the acquisition of equity interests or assets.

Common Stock

Shares entitling their holders to dividends that vary in amount and may even be missed, depending on the fortunes of the company.

Fair Value

A financial accounting term referring to the estimated market value of an asset, liability, or company.