Which of the Following Is a Disadvantage of the Corporate

question 122

Multiple Choice

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

• A) Separation of ownership and management
• B) Continuous life
• C) The potential to raise large amounts of capital
• D) No mutual agency

Calculate the financial advantages of make versus buy decisions.

Understand the relevance of fixed and variable costs in decision-making.

Assess the impact of special orders on the financial performance.

Comprehend the impact of adding a new product to the product line on overall financial performance.

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Definitions:

Contractual Intent

The intention of parties to enter into a legally binding agreement, demonstrated by their words, actions, and circumstances surrounding the agreement.

Letter Of Credit

A binding document that a buyer can request from a bank to guarantee that the payment for goods will be made to the seller.

Invoice

A document issued by a seller to a buyer, listing goods or services provided, their prices, and payment terms.

Revocation

The act of officially withdrawing, cancelling, or annulling something, such as a license, will, or law.