The Disadvantages of a Company Business Structure Include All of the Following

question 61

Multiple Choice

The disadvantages of a company business structure include all of the following except:

• A)extensive regulatory requirements.
• B)more expensive to establish.
• C)less management flexibility.
• D)mutual agency.

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Definitions:

Present Value Method

An approach to evaluate the current worth of a future cash flow, considering a specific rate of interest or cost of capital.

Capital Investment Analysis

The process of assessing the viability, stability, and profitability of long-term investments to determine their potential impact on the financial health of an entity.

Cash Payback Method

A capital budgeting technique that calculates the time needed to recoup the cost of an investment, based on cash inflows.

Net Cash Inflows

The amount of cash that a company receives minus the cash it spends over a period.