Due to recent beef recalls, Southwest Steakhouse is consideringincorporating. Bob, the owner, wants to protect his personal assetsin the event the restaurant is sued.
1.First answer which advantage of incorporating is mostapplicable in protecting Bob's personal assets? A. A corporationhas continuous life. B. There is a mutual agency among thestockholders. C. Corporations can raise more money to pay forgovernment regulations. D. The transfer of corporate ownership iseasy. E. Stockholders have limited liability.
2.What are other advantages of organizing as a corporate entity?(Select three that apply.) A. A corporation has continuous life. B.Start-up costs are lower than other business forms. C. Thecorporation is taxed separately from the shareholders. D. Amajority vote is all that is required for any business decision. E.All income and expenses are split evenly among the shareholders. F.It does not allow stockholders to bind the business to a contract.G. There is no mutual agency among the stockholders and thecorporation
3.
What are some disadvantages of organizing as aâ corporation?â(Select three thatâ apply.)
A.
âStart-up costs are higher than other business forms.
B.
Stockholders have limited liability.
C.
The transfer of corporate ownership is easy.
D.
Earnings of the corporation are subject to double taxation.
E.
Ownership and management are often separated.
F.
Corporations can raise more money than a proprietorship orpartnership.
G.
It has an indefinite life.
Due to recent beef recalls, Southwest Steakhouse is consideringincorporating. Bob, the owner, wants to protect his personal assetsin the event the restaurant is sued.
1.First answer which advantage of incorporating is mostapplicable in protecting Bob's personal assets? A. A corporationhas continuous life. B. There is a mutual agency among thestockholders. C. Corporations can raise more money to pay forgovernment regulations. D. The transfer of corporate ownership iseasy. E. Stockholders have limited liability.
2.What are other advantages of organizing as a corporate entity?(Select three that apply.) A. A corporation has continuous life. B.Start-up costs are lower than other business forms. C. Thecorporation is taxed separately from the shareholders. D. Amajority vote is all that is required for any business decision. E.All income and expenses are split evenly among the shareholders. F.It does not allow stockholders to bind the business to a contract.G. There is no mutual agency among the stockholders and thecorporation
3.
What are some disadvantages of organizing as aâ corporation?â(Select three thatâ apply.)
A.
âStart-up costs are higher than other business forms.
B.
Stockholders have limited liability.
C.
The transfer of corporate ownership is easy.
D.
Earnings of the corporation are subject to double taxation.
E.
Ownership and management are often separated.
F.
Corporations can raise more money than a proprietorship orpartnership.
G.
It has an indefinite life.
Unlock all answers
