Question

4.Which of the following are advantages of the corporate form of organization? I. Ability to raise large sums of equity capital; II. Ease of ownership transfer; III. Profits taxed at the corporate level; IV. Limited liability for all owners

Answer 1

Answer:

I, II and IV.

Explanation:

A corporate form of organization is an entity separated and distinct from its owners.

There are characteristics that distinguish corporations from proprietorships and partnerships.

Corporations have:

-Separate legal existence.

-Limited liability of stockholders.

-Transferable ownership rights.

-Ability to acquire capital.

-Continuos life.

-Corporate management.