Which of the Following Is an Advantage of Incorporation

question 144

Multiple Choice

Which of the following is an advantage of incorporation?

• A) Shareholders are liable for debts of the corporation.
• B) There are no tax advantages as compared to a sole proprietorship.
• C) Shareholders can veto decisions of directors.
• D) Shares are easily transferred.
• E) Shareholders owe a duty to the corporation.

Understand processes and strategies within the marketing mix, focusing on promotion elements.

Comprehend the notion of supply and demand and its impact on pricing and product availability.

Grasp the various competitive environments in market economies and their implications.

Analyze the effects of government intervention in different economic systems on resource distribution and economic decisions.

---

Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, showing the profitability of a company.

Capital Intensity Ratio

A measure of how much capital is used in production compared to other factors like labor; high ratios suggest a reliance on physical assets and machinery.

Capacity

refers to the maximum level of output that a company can sustain to produce goods or services under normal working conditions.

Retention Ratio

This metric indicates the percentage of net income a firm retains to reinvest in its business rather than distributing to shareholders as dividends.