Which of the Following Could Be Described as Both an Advantage

question 50

Multiple Choice

Which of the following could be described as both an advantage and a disadvantage of incorporation?

• A) Ease of capital generation
• B) Limited liability
• C) Government regulations
• D) Lack of mutual agency

---

Definitions:

Monopolistically Competitive

In a monopolistically competitive market, many firms sell products that are similar but not identical, allowing for some degree of market power and price setting.

Highly Concentrated

Refers to a situation or market in which a few entities or businesses hold a large majority of market share or influence.

Market's Domination

A condition in which one or more firms hold a significant share of the total market sales, limiting competition and possibly leading to higher prices or lower quality for consumers.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.