E14-1 Advantages and disadvantages of a company [5–10 min] Following is a list of the advantages and disadvantages of the corporate form of business: 1 Ownership and management are separated. 2 Entity has indefinite life. 3 Transfer of ownership is easy. 4 Shareholders' liability is limited. 5 Possible double taxation. 6 Entity can raise more money than a partnership or proprietorship. 7 Government regulation is expensive. Requirement Identify each quality as either an advantage or a disadvantage.

E14-1 Advantages and disadvantages of a company [5–10 min] Following is a list of the advantages and disadvantages of the corporate form of business: 1 Ownership and management are separated. 2 Entity has indefinite life. 3 Transfer of ownership is easy. 4 Shareholders' liability is limited. 5 Possible double taxation. 6 Entity can raise more money than a partnership or proprietorship. 7 Government regulation is expensive. Requirement Identify each quality as either an advantage or a disadvantage.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 89.1C

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