Which of the Following Is Not an Advantage of Companies

question 59

Multiple Choice

Which of the following is not an advantage of companies over sole traders or partnerships?

• A) Limited liability
• B) Continuity of existence
• C) Less government regulation
• D) Simpler transferability of ownership

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Definitions:

Preferred Shares

A class of ownership in a corporation with a fixed dividend, that has priority over common shares in the distribution of dividends and assets.

SEC Requires

Mandatory rules and requirements established by the Securities and Exchange Commission that publicly traded companies must follow to protect investors and ensure the integrity of the securities markets.

Common Stock

Common stock represents units of ownership interest or equity in a corporation, where holders usually have voting rights to elect the board of directors.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often paying fixed dividends.