Which of the Following Is Not an Advantage of the Corporate

question 21

Multiple Choice

Which of the following is not an advantage of the corporate form of ownership?

• A)Limited liability for the owners.
• B)It is the easiest and least expensive form of ownership to create.
• C)Easy transfer of ownership.
• D)Perpetual life.

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Definitions:

Ordinary Annuity

A series of equal payments made at regular intervals over a set period.

Interest Rate

The cost of borrowing money, typically expressed as an annual percentage of the principal amount.

Payments

Transactions that involve the transfer of money from one party to another, often in exchange for goods or services.

Mutual Fund

An investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.