Which of the following is a disadvantage of the corporate form of organization?

  • School CUNY Borough of Manhattan Community College
  • Course Title MAT 209
  • Uploaded By foxhwd
  • Pages 260
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123.Which of the following is a disadvantage of the corporate form of organization?a.Both the corporation and its stockholders are taxed on profits retained and distributed.b.Ownership of stock is easy to transfer.c.More capital can be raised by the corporate form.d.Corporations can hire better managers.e.The organization survives its owners.ANS:APTS:1DIF:Mod.REF:p. 121OBJ:4-5NAT:AACSB: AnalyticTOP:Advantages of Corporations124.The form of business organization that experiences double taxation is thea.partnership.b.corporation.c.venture company.d.syndicated partnership.e.sole proprietorship.ANS:BPTS:1DIF:EasyREF:p. 121OBJ:4-5NAT:AACSB: AnalyticTOP:Advantages of Corporations125.What does double taxation mean?a.Companies must pay taxes on their income, and then employees must pay taxes on theirsalaries and wages.b.Companies have to pay both sales taxes and income taxes.c.Companies must pay taxes on their earnings, and then stockholders pay taxes on theirdividends.d.Suppliers tax their customers, and in turn these businesses tax the ultimate consumer.e.Companies must pay taxes on corporate income and then additional taxes on distributionsto profit stockholders.ANS:CPTS:1DIF:Diff.REF:p. 121OBJ:4-5NAT:AACSB: AnalyticTOP:Advantages of Corporations

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Which of the following is a disadvantage of the corporate form of organization?

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Macroeconomics: Private and Public Choice

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126.Shane is looking for ways to get more capital for his appliance sales and service business. He is very protective ofhis company's information and fears that it will get into the wrong hands. Shane would probablynotwant toa.hire new employees.b.incorporate his company.c.get a loan from a bank.d.take on a trustworthy friend as a partner.e.use a computerized accounting system.ANS:BPTS:1DIF:Mod.REF:p. 121OBJ:4-5NAT:AACSB: AnalyticTOP:Advantages of Corporations127.The form of business organizationmostheavily regulated by the government is thea.partnership.b.corporation.c.joint venture.d.syndicate.e.sole proprietorship.ANS:BPTS:1DIF:EasyREF:p. 121OBJ:4-5NAT:AACSB: AnalyticTOP:Advantages of Corporations128.Judy Barnes, Betty Turley, and Bob Turner want to obtain limited liability for their business, but they want to avoiddouble taxation. Which type of business ownership would you recommend?a.Regular corporationb.General partnershipc.Sole proprietorshipd.S-corporatione.Not-for-profit corporationANS:DPTS:1DIF:Mod.REF:p. 122OBJ:4-6NAT:AACSB: AnalyticTOP:Special Types of Business Ownership

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Which of the following is a disadvantage of the corporate form of organization?

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What is a disadvantage of the corporate form of organization?

Disadvantages of a corporation include it being time-consuming and subject to double taxation, as well as having rigid formalities and protocols to follow. This article is for entrepreneurs who are trying to determine their business structure and whether a corporation makes sense for them.

Which of the following is a disadvantage of organizing as a corporation quizlet?

Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation.

What are 3 disadvantages of a corporation?

What are the Disadvantages of a Corporation?.
Double taxation. Depending on the type of corporation, it may pay taxes on its income, after which shareholders pay taxes on any dividends received, so income can be taxed twice..
Excessive tax filings. ... .
Independent management..

Which of the following is not an advantage of the corporate form of organization?

In general, government regulation can be seen as a disadvantage of the corporation form of organization, as government regulation of any type or in any form can hurt, significantly, the corporation being regulated by the Government.