Which of the Following Characteristics Is an Advantage of the Corporate

question 111

Multiple Choice

Which of the following characteristics is an advantage of the corporate form of business?

• A)less degree of government regulation
• B)limited liability of stockholders
• C)separation of ownership and management
• D)low start-up costs

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, showing assets, liabilities, and equity.

Corporation

A legal entity that is separate and distinct from its owners, providing limited liability protection to its shareholders and being capable of owning assets, entering contracts, and sue or being sued.

Accounts Receivable Turnover

A financial ratio indicating how many times a company's accounts receivable are collected during a period, reflecting the efficiency of credit policies and collection efforts.

Financial Information

Data and facts related to the monetary performance and position of an entity, including revenues, expenses, assets, and liabilities.