Which of the Following Statements Regarding the Corporate Form of Business

question 95

Multiple Choice

Which of the following statements regarding the corporate form of business is correct?

• A)The disadvantages are that generating capital is difficult and that owners have limited liability.
• B)Disadvantages are that the business is subject to government regulations and double taxation on its income.
• C)One disadvantage is that ownership is easy to transfer.

---

Definitions:

Market Development

Strategies or activities aimed at finding new markets or expanding existing ones for a product or service.

Diversification

A strategy for managing risk that diversifies a portfolio by incorporating a broad range of investments to reduce the effect of any single asset's performance.

Market Penetration

A measure of the extent to which a product or service is recognized and bought by customers within a particular market.

Market Development

Strategies or actions that seek to expand an existing product into new markets or demographic segments.