Which of the Following Is an Advantage of Incorporation

question 141

Multiple Choice

Which of the following is an advantage of incorporation?

• A)Shareholders owe a duty to the corporation.
• B)Shareholders are liable for debts of the corporation.
• C)Shares are easily transferred.
• D)Shareholders can veto the decisions of directors.
• E)There are no tax advantages as compared to a sole proprietorship.

Learn about different strategies for problem finding in the context of creative processes.

Grasp the importance of preparedness and prior knowledge in enhancing creativity.

Differentiate between intrinsic and extrinsic motivation in the context of creative work.

Understand the legal principles involving the enforceability of agreements and contracts.

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Definitions:

Discounted

The process of determining the present value of a future amount by applying a discount rate.

Simple Interest

Simple interest is a way of calculating interest where the amount earned or paid is based on the original principal and does not compound.

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock certificate.

Interest Rate

The percentage of a loan that is incurred as interest by the borrower, usually represented as an annual percentage of the outstanding loan amount.