Which of the Following Is a Strength of the Corporate

question 7

Multiple Choice

Which of the following is a strength of the corporate form of business?

• A) Limited life of the business
• B) Unlimited access to capital
• C) Unlimited liability
• D) Double taxation of income

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Definitions:

Straight-Line Depreciation

A method of allocating an asset's cost evenly throughout its useful life.

MACRS

Modified Accelerated Cost Recovery System; a method of depreciation applied in the United States that allows businesses to recover investments in certain property over a specified life.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the benefits that could have been received.

Accelerated Depreciation

A method of depreciation that allows a business to allocate larger portions of the cost of an asset to earlier years of its useful life.