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Brilliant_brown [7]
2 years ago
13

dentify (by letter) each of the following characteristics as being an advantage, a disadvantage, or not applicable to the corpor

ate form of business organization. - Separate legal entity C. Taxable entity resulting in additional taxes B. Continuous life - Unlimited liability of owners C. Government regulation - Separation of ownership and management B. Ability to acquire capital B. Ease of transfer of ownership
Business
1 answer:
belka [17]2 years ago
6 0

Answer:

1. Separate legal entity ⇒ ADVANTAGE

This is an advantage because it means that the owners are not liable for the actions of the company. If the company goes bankrupt for instance, they will not have to pay for it with their own finances.

2. Taxable entity resulting in additional taxes ⇒ DISADVANTAGE

Anything that results in corporations having to pay more taxes is disadvantageous from their point of view.

3. Continuous life ⇒ ADVANTAGE

This is an advantage because it makes accounting for the company easier as well as giving investors more stability in their planning.

4. Unlimited liability of owners ⇒ NOT APPICABLE.

This is not applicable to Corporate ownership but rather to sole proprietorship.

5. Government regulation ⇒ BOTH ADVANTAGE AND DISADVANTAGE

This can be both an advantage and a disadvantage. On the one hand, it can lead to the industry functioning effectively but on the other hand, it could stifle growth with restrictive policies.

6. Separation of ownership and management ⇒ DISADVANTAGE

This is a disadvantage because it gives rise to the Agency problem where management might try to act in their own best interests instead of that of the owners.

7. Ability to acquire capital ⇒ ADVANTAGE

Corporations are better able to acquire capital which is good because it means that they will be able to invest and embark on more projects.

8. Ease of transfer of ownership ⇒ ADVANTAGE

Owners of corporations especially the public ones, are able to transfer ownership quite easily to others through the sale of shares.

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When comparing two investments with the same effective rate, one with a 4-year term and semi-annual compounding and one with a 2
Delicious77 [7]

The 4-year term instrument's nominal rate is higher than the 2-year term instrument's nominal rate.

What is nominal rate?

The increase in payment you make to the lender for using the borrowed funds is known as the nominal interest rate.

The rate of compounding is higher for 2-year investments than for 4-year investments, which are compounded semi-annually.

As a result, option (b) is correct.

Learn more about on nominal rate, here:

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6 0
2 years ago
What are the three legal forms of business organization? What are their advantages and disadvantages?
algol13

Answer:

There are three legal forms of business organization that are sole proprietorship, society and corporation.

Explanation:

<u>Sole proprietorship:</u> A company that has only one person and works for its own benefit. In almost all the world there are a large number of sole proprietorships which are usually small companies, the most common being for example a personal teacher, a bicycle workshop, etc.

Advantage:

- The owner receives all profits and profits.

- Independence

Disadvantages:

- There is unlimited liability so that all income can be used to pay debts.

- The owner performs several activities.

<u>Company</u>: company that has two or more people. In general, partnership companies are larger than sole proprietorships. The most common companies in society are finance and insurance.

Advantage:

- Raises more funds than sole proprietorship.

- Greater intelligence and administrative ability.

Disadvantages:

- The company dissolves when a partner dies.

- Difficulty to liquidate or transfer the company.

<u>Corporation</u>: The property (shares) of a corporation are its shareholders. Shareholders have profits by receiving dividends that are distributions of the earnings of the shares.

Advantage:

- They have a limited liability, they don't lose more money than they invested.

- The company has a long life.

Disadvantages:

- Higher organizational costs than in other business forms since they need to hire staff.

- Subject to greater government regulation.

4 0
2 years ago
Which of the following is true about checks?
tankabanditka [31]

Incomplete question. Here's the remaining question;

A. It is a two-party instrument.

B. It necessitates that the seller has to be both the drawer and the payee.

C. It is always payable on demand.

D. It requires that the drawer is holding the drawee's money.

Answer:

C

Explanation:

Note that, to be always paid on demand implies that any time a request is made (demanded) to the bank will be fulfilled.

Therefore, an individual has a sense of security using checks to receive payments.

4 0
3 years ago
Bachelor's degrees are awarded by
Misha Larkins [42]
A bachelor's degree (from Middle Latin baccalaureus) or baccalaureate (from Modern Latin baccalaureatus) is an undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to seven years (depending on institution and academic discipline).
5 0
3 years ago
Read 2 more answers
Select the correct answer.
GrogVix [38]

Answer:

A

Explanation:

trust me it is

7 0
3 years ago
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