All of the Following Are Advantages of a Corporation EXCEPT

question 326

Multiple Choice

All of the following are advantages of a corporation EXCEPT

• A) double taxation.
• B) limited liability.
• C) ability to raise large sums of financial capital.
• D) unlimited life.

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Definitions:

Profit-maximizing Monopolist

A monopolist who determines the quantity of output and price levels that result in the highest possible profits, given its unique market power.

Downward-sloping Demand Curves

A graph showing that as the price of a good decreases, the quantity demanded increases, illustrating the inverse relationship between price and demand.

Market Power

The ability of a firm or entity to influence the price or control the availability of products or services in a market.

DeBeers

A global corporation specializing in diamond exploration, mining, retail, and trading, known for its historical monopoly over the diamond market.