Indicate Whether the Following Characteristics of the Corporate Form of Business

question 116

Essay

Indicate whether the following characteristics of the corporate form of business are considered to be an advantage or disadvantage.
1. Separate legal entity
2. Ability to raise capital
3. Continuous life
4. Double taxation of corporate earnings
5. Separation of ownership and management
6. Ease of ownership transfer
7. Government regulation
8. Limited liability of stockholders

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Definitions:

Inelastic

Describing a situation in which the demand or supply of a good or service is relatively unresponsive to changes in price.

Demand

The amount of a product or service that customers can and are willing to buy at different price levels over a specified time.

Supply

The total amount of a product or service that is available for purchase at any given price.

Inelastic

Describes a situation where the demand or supply of a good or service is unaffected by changes in price.