Which of the Following Is Not One of the Things

question 85

Multiple Choice

Which of the following is not one of the things that causes a corporation to have a significant advantage over a partnership or a proprietorship?

• A) Limited liability.
• B) Ease of transfer of ownership interest.
• C) Unlimited life.
• D) Elimination of double taxation.
• E) Ability to retain earnings and thus convert income from personal income to capital gains.

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Definitions:

Plant Size

The scale or capacity of a factory or production facility, often measured in terms of productive capability or physical dimensions.

Diseconomies of Scale

An economic concept where increasing production results in higher per unit costs.

Long-run Average Total Cost

The average cost per unit of output over the long term, where all inputs are considered variable, allowing firms to adjust all factors of production.

Plant Sizes

The physical capacity or scale of a manufacturing facility, which can influence production volume, efficiency, and cost.