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.

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Definitions:

Office Supplies Expense

The cost associated with purchasing supplies used in the daily operations of an office.

Office Supplies

Materials and items used daily in offices for administrative tasks and functions, not part of inventory sold.

Purchased

The act of buying goods, services, or assets.

Calendar-Year

A one-year period that begins on January 1 and ends on December 31, based on the Gregorian calendar, commonly used for financial and administrative purposes.