Which of the Following Factors Enable a Public Corporation to Grow

question 80

Multiple Choice

Which of the following factors enable a public corporation to grow to a greater extent,and perhaps at a faster rate,than a partnership or a proprietorship?

• A)Unlimited liability of shareholders
• B)Access to the capital markets
• C)Limited life
• D)Elimination of double taxation on corporate income
• E)All of the above

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Definitions:

Asset Investment

The allocation of resources into physical or financial assets with the expectation of generating future returns.

Acquisitions

The process by which a company buys most or all of another firm's shares in order to take control.

Dividends In Arrears

Dividends on preferred stock that have been declared but not yet paid to shareholders.

Cumulative Preferred Stock

A type of preferred stock that accrues dividends if they are not paid in the year they are due, with these dividends being required to be paid out before any dividends can be paid to common stockholders.