Which of the Following Corporate Characteristics Is a Disadvantage of a Corporation

question 73

Multiple Choice

Which of the following corporate characteristics is a disadvantage of a corporation?

• A)Stockholders of a corporation have limited liability.
• B)A corporation has a continuous life.
• C)There is no mutual agency among the stockholders and the corporation.
• D)Earnings of a corporation are taxed twice.

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Definitions:

Raw Materials

The basic substances in their natural, modified, or semi-processed states used as inputs for manufacturing processes.

Selling and Administrative Expense

Costs related to the selling of products and the administration of a business.

Budgeted Unit Sales

The projected amount of sales in units that a company plans to achieve in a specific period.

Cash Disbursements

Payments made in cash by a business for various purposes, including operating expenses, asset purchases, and debt repayments.