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28 Feb 2019

Use the following criteria, specify the legal form of business that is favored: (a) organizational requirements and costs, (b) liability of the owners, (c) the continuity of the business, (d) the transferability of ownership, (e) management control and regulations, (f) the ability to raise capital, and (g) income taxes.

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Patrina Schowalter
Patrina SchowalterLv2
28 Feb 2019

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Related questions

The disadvantages of the corporate form of business include:

a. Ability to transfer ownership.

b. Additional taxes.

c. Limited liability.

d. Ability to raise capital.

Which of the following contribute to a corporation's ability to build large pools of capital? That is, which of the following increase the willingness of investors to provide capital to a corporation?

I. limited liability

II. ease of transferring ownership

III. separation between the life of the business and the life of the owner

IV. double taxation of profits

V. agency costs

A. I only

B. I and III only

C. I, III, and IV only

D. I, II, and III only

E. I, II, III, and V only

WEEK ONE CHAPTER ONE

1. Advantages of the corporation include ​ (Select the best choice​ below.)

A.

transferability of ownership.

B.

unlimited liability.

C.

ability of the corporation to raise capital.

D.

double taxation of dividend income.

E.

A and C.

F.

A and B.

2. The​ long-run goal of the firm is to (Select the best choice​ below.)

A.

hold large quantities of cash.

B.

maximize shareholder wealth.

C.

increase sales regularly.

D.

maximize earnings per share.

3. In the search for​ profits, U.S. corporations have been forced to look beyond our​ country's borders. All of the following contributed to the movement EXCEPT

A.

trade protectionism.

B.

acceptance of the free market system in Third World countries.

C.

information technology revolution.

D.

collapse of communism.

4. A corporate manager decides to build a new store on a lot owned by the corporation that could be sold to a local developer for​ $250,000. The lot was purchased for​ $50,000 twenty years ago. When determining the value of the new store​ project,

A.

the cost of the lot is zero since the corporation already owns it.

B.

the incremental cash flow should be the​ $50,000 original cost less accumulated amortization.

C.

the cost of the lot for valuation purposes is​ $50,000 because land does not depreciate.

D.

the opportunity cost of the lot is​ $250,000 and should be included in calculating the value of the project.

PLEASE ANSWER THE QUESTIONS CORRECTLY; ONE ANSWER FOR EACH QUESTION!!!

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