Which Statement Is FALSE Considering Both Advantages and Disadvantages of Corporations

question 14

Multiple Choice

Which statement is FALSE considering both advantages and disadvantages of corporations as a legal business organization?

• A) Perhaps the greatest advantage of corporations is that their owners (the shareholders) enjoy limited liability-limited to the value of their shares.
• B) Legally the corporation continues to exist even if one or more owners cease to be owners.
• C) Corporations usually are not as well positioned as proprietorships and partnerships to raise large sums of financial capital.
• D) Separation of ownership and control is a disadvantage of the corporate structure; owners and managers may have different incentives.

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Definitions:

Values

Core beliefs or standards that guide and motivate attitudes and actions in individuals and across societies.

Desirable

Qualities or traits that are regarded as advantageous, beneficial, or attractive.

Morally Correct

Pertains to actions or behaviors that are considered right, ethical, and acceptable within the framework of a particular moral or ethical system.

American Culture

A complex blend of values, traditions, and practices influenced by diverse ethnic groups, historically shaped by immigration and innovation.