course hero which of the following is a disadvantage of the corporation form of ownership?

Owner is separate from management, which is a disadvantage of a corporation. Management and control is separated from ownership however, board of directors may not always represent the best interest of the stockholders because the board usually has a closer relationship with the management than the majority of the stockholders. a is incorrect

Full Answer

What is the least expensive business organization to create?

D. A sole proprietorship is the least expensive business organization to create.

What is an example of a publicly held business?

D. A family-operated business is an example of a publicly held business organization.

Why is a partnership practical?

A. A partnership is practical because only a limited number of persons can be partners.

Which is the hardest form of organization to create?

D. Sole proprietorships are the hardest forms of organization to create.

When is a partnership dissolved?

E. A partnership is dissolved anytime a partner ceases to be a partner, regardless of whether the reason is withdrawal or death.

Is sole proprietorship expensive?

A. The creation of sole proprietorship is expensive and requires formal documentation.

Is a proprietorship more stable than a proprietor?

A proprietorship's business activity may be more stable than a proprietor's willingness to remain actively involved in the business. C. A proprietor may have to share his or her voice of control and responsibility for the business' success with the other acting members of the organization.

What does Hailey Wilson do?

Hailey Wilson loves to cook and receives unqualified praise whenever she prepares a meal for someone. Encouraged by these compliments and eager to put her culinary talents to good use, Hailey decides to open a small neighborhood restaurant. Since she plans to maintain complete control of the business, she will most likely organize it as a

How many stockholders can an LLC have?

d. An LLC can have no more than 100 stockholders.

Why do people work for sole proprietorships?

a. When compared to larger businesses, the lure of employee benefits is one reason why people go to work for sole proprietorships.

Where are downtown mufflers located?

Downtown Mufflers, a partnership formed by Edmundo and Javier Escobar in California , has been in operation for five years. Edmundo and Javier would like to convert the business to a corporation. They will transfer all of the assets of the partnership to the corporation once it is formed and dissolve the partnership. They are having a difficult time deciding where to incorporate the business. California seems to be the obvious choice because that is where they are located, but Oregon and Nevada are nearby, industrial rental space is inexpensive in Nevada, and the population would supply an adequate number of qualified employees if they chose to move their operation there. Oregon would be a good choice because its damp environment leads to muffler rust which necessitates muffler replacement more often than in California or Nevada. Edmundo mentions that there are other considerations for selecting a state in which to incorporate a business. Which of the following is not a consideration for selecting a state for incorporating a business?

Who pays taxes on profits?

e. The corporation and its stockholders pay taxes on profits .

Is an LLC more than an S corp?

a. Many experts believe that an LLC is nothing more than an S-corporation.

Is forming a corporation a complex process?

a. Forming a corporation is a complex and costly process.

Why are corporations subject to stricter compliance standards?

As discussed above, due to various reasons, corporations are subject to stricter compliance standards as compared to other businesses. These compliances ensure the safety of shareholders’ investments in corporations and can also be beneficial for the corporation.

Why are corporations so difficult to form?

This is because corporations must comply with stricter rules as compared to other types of businesses. Similarly, there are several different stages that the initial owners of a corporation must go through to form a corporation.

Why do corporations have unlimited growth potential?

This is mainly because corporations are not dependent on a single owner or a few owners for capital requirements. As discussed before, a corporation can have an unlimited number of shareholders.

What is account payable?

Account Payable. There are many different forms or types of businesses. The simplest type of business is a sole proprietorship. It is a business that is owned by a single owner. Sole proprietorships are generally smaller in size and depend on a single owner to provide all the capital for their operations. Once these businesses grow, the owner may ...

Why are corporations limited liability?

However, that isn’t the only benefit of being a separate entity. Corporations can enter into contracts and guarantees, lend and borrow money, invest funds, buy, own or sell property , and get into legal disputes as a separate entity.

Why is management of a corporation problematic?

One of the problems of corporations is that their management is separate from their shareholders. While this can provide advantages for both the corporation and the shareholders, as discussed above, it can also be problematic. The management of a corporation acts as agents of the shareholders in the corporation.

What is the final type of business?

The final type of business is known as corporations . Corporations are legal business entities that can have anywhere between 1 to unlimited owners. The ownership of corporations comes in the form of shares. Shares are legal documents that give the ownership of a corporation to the shareholder.