Which one statement about the legal form of business is most consistent? Select

Question

Which one statement about the legal form of business is most consistent? Select one: a. A disadvantage of the corporation is that it has relatively high organizational costs. b. An advantage of the sole proprietorship is that they do not generally offer easy transferability of ownership. c. A disadvantage of the corporation is that they raise capital more easily. d. An advantage of the corporation is that they are subject to relatively fewer government regulations. e. An advantage of the sole proprietorship is that they offer limited liability to the owner.

Explanation / Answer

1) Answer (a) A Disadvantage of the corporation is that it has relatively high organizational costs.

Compared to all other forms of business organization corporation is the organization which should be incurr highest organizational costs. Since for establishing the Corporation form of organization one need to fulfill lot of obligations with the government like filing articles and registering itself etc.So that corporation shold face several type of legal expenses compared to other forms of business organization.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.