Which of the Following Is the Disadvantage of the Corporate

question 22

Multiple Choice

Which of the following is the disadvantage of the corporate form of organization?

• A)difficulty in raising capital
• B)unlimited liability of the owners
• C)finite life of the organization
• D)the tax treatment of dividends

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Definitions:

Marginal Cost

The increase in total cost that arises from producing an additional unit of output, crucial for decision-making in production.

Short-Run Supply Curve

A graphical representation showing the quantity of goods that producers are willing to supply at different prices in the short term, when at least one input is fixed.

Business Owner

An individual or entity that possesses and oversees the operations of a company or enterprise, ensuring its functionality and aiming for its success.

Profitability

The degree to which a business or activity yields profit or financial gain, measured by the ratio of profit to revenues or investment.