1) Which of the following is NOT an advantage of the corporate form of business

Question

1) Which of the following is NOT an advantage of the corporate form of business organization?

Select one:

A. The ease with which capital can be raised

B. The protection afforded stockholders against personal liability

C. Both the business and the owners are taxed

D. The relative ease of selling ownership shares

3. Which of the following financial statements is a period statement?

Select one:

A. Income statement

B. Statement of retained earnings

C. Statement of cash flows

D. All of the above

E. None of the above

Explanation / Answer

Question 1: Answer: C Both the Business and the Owners are Taxed

Major Disadvantage of a corporate form of Business Organization is the Double Taxation: Business will pay tax on their net income, & Distribute the Dividend to the Shareholders, Again Owners need to pay tax on dividend they received from the corporation as income that is taxed.

Question 2: Answer : D) all of the Above

Income Statement, Statement of the retained EarninRetainedearnings and cash flow statement are normally prepared for a specified Period of time. these are all Period statement.

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