Ques. 1) Which of the following is not an advantage of the corporate form of bus

Question

Ques. 1) Which of the following is not an advantage of the corporate form of business organization?
a. Sell debt or equity in public capital markets
b. Owners have limited liability
c. Owners are subject to double taxation
d. May continue in business in perpetuity

Ques. 2) Working capital management involves decisions related to the following:
a. Purchase of production machines
b. Extending credit to customers
c. Signing a 3 year lease for an office building
d. Negotiating with city officials a 2-year tax abatement plan for a new factory

Ques. 3) Which of the following statements is correct:
a. Market forces provide sufficient incentives for ethical behavior
b. It would be easier to do business if there were no ethical norms
c. Government regulations are necessary to ensure ethical behavior
d. An ethical culture with good internal controls promotes ethical behavior

Explanation / Answer

Ques. 1) Which of the following is not an advantage of the corporate form of business organization?

d. May continue in business in perpetuity
Ques. 2) Working capital management involves decisions related to the following:
b. Extending credit to customers
Ques. 3) Which of the following statements is correct:
d. An ethical culture with good internal controls promotes ethical behavior

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