Which of the Following Are Advantages of the Corporate Form

question 36

Multiple Choice

Which of the following are advantages of the corporate form of organization?
I.Ability to raise large sums of equity capital
II.Ease of ownership transfer
III.Profits taxed at the corporate level
IV.Limited liability for all owners

• A)I and II only
• B)III and IV only
• C)II, III, and IV only
• D)I, II, and IV only
• E)I, II, III, and IV

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Definitions:

Economic Profits

The difference between the total revenue earned by a firm and the total costs of production, including opportunity costs.

Market Demand Curve

A graphical representation showing the total demand of all consumers in a market for a particular product at different prices.

Colluded

A situation where firms in a market agree to set prices or output levels to maximize collective profits, often at the expense of competition.

Marginal Cost

The financial implication of creating an extra unit of a product or service.