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.

Understand various financial ratios and their roles in measuring company performance and solvency.

Calculate and assess the times interest earned ratio to analyze a company's ability to meet its interest obligations.

Analyze a company's liquidity through current ratio calculation and understand its significance.

Comprehend the computation and significance of return on total assets, asset turnover, and return on common stockholders' equity.

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Definitions:

"American Dream"

The belief that all American citizens ought to have the same chance to attain success and prosperity by means of dedication, effort, and taking steps on their own initiative.

Crime Rates

The frequency at which crimes occur in a specific area during a set period.

Strain Theory

A sociological theory that posits societal structures may pressure citizens to commit crimes by placing emphasis on goals that are not achievable through legitimate means for everyone.

Chivalry Hypothesis

The theory suggesting that societal norms and judicial systems are more lenient towards women than men, hence expecting them to be treated with leniency and gallantry in situations of legal transgression.