Question

In: Accounting

Using a list of corporate characteristics, the student will indicate whether the characteristic is an advantage...

Using a list of corporate characteristics, the student will indicate whether the characteristic is an advantage or a disadvantage for the corporate form

Does anybody know how to start figuring which is an ADVANTAGE or DISADVANTAGE???

Options or term examples are

1. Ownership and management are separated

2. The entity has a continuous life.

3. Transfer of ownership is easy.

4. Stockholder's liability is limited.

5. Exposure to double taxation is evident, (that sounds bad)

6. An entity can raise MORE money than a partnership or sole proprietorship.

7. Government regulation is expensive.

Financial Accounting

Solutions

Expert Solution

1. Ownership and management are separated is an advantage as the Burden of work are divided between them as well as the accountability and responsibility.So now in corporate form the division of work takes place according to their skills and qualification which brings effectiveness and efficiency in the work.

2. The entity has a continuous life is an advantage as it means that the life of the company is beyond the life of a person which means that after the death of its stockholders the company is still able to exist by tranferring the shares to the other person or persons. so the company like FORD motors are still able to exist.

3. Transfer of ownership is easy is an advantage as it means that shares can easily be tranferred from one person to other person.Stocks of a corporate form can easily be easily be sold on the stock exchnages whenever they wish to.so this makes it an advantage.

4 Stockholder's liability is limited is an advantage as it means that stockholders of an corporate form have limited liability to the any loans, credit facility or any other type of loan which company avail so this means that the sole responsilibilty lies with company and the stockholders have to pay to certain amount according to their share in case of any lawsuit and bankruptcy.

5. Exposure to double taxation is evident is a disadvantage as on the business level the corporate form is taxed as business where as when profits are distributed they are being taxed in form of dividends.so this becames a disavantage of the corporate form.

6.  An entity can raise more money than a partnership or sole proprietorship is an advantage as they can issue shares of its company to the public ( Only a Company can issue ) from that thay can generate money in form of capital which they can invest in business projects which requires huge amount of capital and they get their capital this way

7. Government regulation is expensive is a disadvantage as to form a corporate form there so many government formalities which needs to be fulfilled properly so corporates form appoints well qualified attorneys for the work and thier are many steps which is costly to corporate forms so government regulations are costly

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Indicate whether (a) skeletal (b) cardiac (c) smooth muscle has the following characteristics. A characteristic may...
Indicate whether (a) skeletal (b) cardiac (c) smooth muscle has the following characteristics. A characteristic may apply to more than one muscle type. _______ contraction usually voluntary _______ contraction usually involuntary _______ regulated mostly by somatic nerves _______ regulated mostly by autonomic nerves _______ striated _______ non-striated _______ able to stretch _______ elastic
Indicate whether the following statements are characteristic of the sympathetic or parasympathetic nervous system: Causes heart...
Indicate whether the following statements are characteristic of the sympathetic or parasympathetic nervous system: Causes heart rate to increase - SympatheticParasympatheticBothNeither Utilizes the neurotransmitters acetylcholine and norepinephrine - SympatheticParasympatheticBothNeither Only neurotranmitter used is acetylcholine - SympatheticParasympatheticBothNeither Lacks ganglia -SympatheticParasympatheticBothNeither Craniosacral - SympatheticParasympatheticBothNeither Thoracolumbar - SympatheticParasympatheticBothNeither Will send signals through the vagas nerve - SympatheticParasympatheticBothNeither Can trigger vasodilation - SympatheticParasympatheticBothNeither Does not form a synapse with the adrenal gland  SympatheticParasympatheticBothNeither Short preganglionic neuron, long postganglionic neuron - SympatheticParasympatheticBothNeither Active after eating a...
1. Indicate whether each of the following decisions is more characteristic of a primarily market-oriented economy...
1. Indicate whether each of the following decisions is more characteristic of a primarily market-oriented economy or of a primarily command-oriented economy: a. a family decides to start a restaurant; b. a business decides to lay off workers; c. the government announces a plan for the national economy to focus on producing high technology goods; d. the government imposes an steep tax increase
List eight characteristics of services and explain what impact each characteristic has on the design process.
List eight characteristics of services and explain what impact each characteristic has on the design process.
For each of the following characteristics, indicate whether it describes a perfectly competitive firm, a monopolistically...
For each of the following characteristics, indicate whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither. (Note: If the characteristic describes neither, leave the entire row unchecked.) Check all that apply. Characteristic Perfectly Competitive Monopolistically Competitive Sells a product identical to that of its competitors     Can earn economic profit in the short run     Produces above the minimum of average total cost in the long run     Charges a price that...
List the characteristic of journal
List the characteristic of journal
List chief characteristics of Krashen's natural approach to language teaching in detail. Explain each chief characteristic
List chief characteristics of Krashen's natural approach to language teaching in detail. Explain each chief characteristic
List four characteristics of the normal distribution. Then use this distribution to explain whether or not...
List four characteristics of the normal distribution. Then use this distribution to explain whether or not it’s possible for a country to have an increase in both the number of extreme wet weather events (rain and snow storms) and extreme dry events (droughts) while maintaining the same average amount of precipitation (rain and snowfall). Illustrate your verbal explanation with a graph. {Why would an economist care about rain, snow and droughts? Because weather significantly influences the ability to produce food...
List four characteristics of the normal distribution. Then use this distribution to explain whether or not...
List four characteristics of the normal distribution. Then use this distribution to explain whether or not it’s possible for a country to have an increase in both the number of extreme wet weather events (rain and snow storms) and extreme dry events (droughts) while maintaining the same average amount of precipitation (rain and snowfall). Illustrate your verbal explanation with a graph.
indicate whether it is best assessed by using a confidence interval or a hypothesis test or...
indicate whether it is best assessed by using a confidence interval or a hypothesis test or whether the statistical inference is not relevant to answer it. What percent of university students support instituting a fall break? Do basketball players hit a higher proportion of free throws when they are playing at home than when they are playing away? Do majority of students who drive wear their seatbelts? On average, were the 23 players on the 2010 Canadian football team older...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT