Essay
Identify (by letter) each of the following characteristics as being an advantage, a disadvantage, or not applicable to the corporate form of business organization.
A = Advantage
D = Disadvantage
N = Not Applicable
Characteristics
1. Separate legal entity
2. Taxable entity resulting in additional taxes
3. Continuous life
4. Unlimited liability of owners
5. Government regulations
6. Separation of ownership and management
7. Ability to acquire capital
8. Ease of transfer of ownership
Correct Answer:
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1. A 5. D
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