Which Statement Is FALSE Considering Both Advantages and Disadvantages of Corporations

question 14

Multiple Choice

Which statement is FALSE considering both advantages and disadvantages of corporations as a legal business organization?

• A) Perhaps the greatest advantage of corporations is that their owners (the shareholders) enjoy limited liability-limited to the value of their shares.
• B) Legally the corporation continues to exist even if one or more owners cease to be owners.
• C) Corporations usually are not as well positioned as proprietorships and partnerships to raise large sums of financial capital.
• D) Separation of ownership and control is a disadvantage of the corporate structure; owners and managers may have different incentives.

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Definitions:

Shiny Aspect

Characteristic of reflecting light, typically because of a smooth, polished surface that appears bright or glistening.

Dull Slate

A type of metamorphic rock known for its dull appearance and fine-grained texture, typically used in roofing and flooring.

Lineation

A linear arrangement of textural or structural features in rock, often indicative of the flow or movement direction during formation.

Long Crystals

Mineralogical structures characterized by their elongated shape, often formed under certain conditions of temperature and pressure.