Name and Describe the Three Forms of Businesses and Their

question 75

Essay

Name and describe the three forms of businesses and their advantages and disadvantages (if any).

---

Definitions:

Prohibited

Actions or activities that are not permitted or allowed by law, regulation, or policy.

Basic Earnings

Earnings calculated by dividing the net income by the total number of outstanding shares, showing the profit earned per share.

Price/Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, commonly used by investors to determine stock attractiveness.

Noncumulative Preferred Stock

A type of preferred stock where dividends do not accumulate if they are not declared or paid in any given year, contrasting with cumulative preferred stock.