Identifying advantages and disadvantages of a corporation Following is a list of advantages and disadvantages of the corporate form of business. Identify each quality as either an advantage or a disadvantage. Ownership and management are separated. The entity has a continuous life. Transfer of ownership is easy. Stockholders’ liability is limited. Exposure to double taxation is evident. The entity can raise more money than a partnership or sole proprietorship. Government regulation is expensive.
Identifying advantages and disadvantages of a corporation Following is a list of advantages and disadvantages of the corporate form of business. Identify each quality as either an advantage or a disadvantage. Ownership and management are separated. The entity has a continuous life. Transfer of ownership is easy. Stockholders’ liability is limited. Exposure to double taxation is evident. The entity can raise more money than a partnership or sole proprietorship. Government regulation is expensive.
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 16DQ
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Identifying advantages and disadvantages of a corporation
Following is a list of advantages and disadvantages of the corporate form of business. Identify each quality as either an advantage or a disadvantage.
- Ownership and management are separated.
- The entity has a continuous life.
- Transfer of ownership is easy.
- Stockholders’ liability is limited.
- Exposure to double
taxation is evident. - The entity can raise more money than a
partnership or sole proprietorship. - Government regulation is expensive.
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