FIN/571 – One disadvantage of the corporate form of business ownership

FIN/571 – One disadvantage of the corporate form of business ownership

Subject: Business    / Finance
Question

One disadvantage of the corporate form of business ownership is the:

Difficulties encountered when changing ownership.

Double taxation of profits.

Limited liability protection provided for all owners.

Unlimited life of the firm.

Firms ability to raise cash.

You plan to invest $6,500 for three years at 4 percent simple interest. What will your investment be worth at the end of the three years?

$6,760.00

$7,311.62

$6,941.11

$7,280.00

$7,250.00

Which one of these is correct???

Net working capital equals current assets plus current liabilities.

Current liabilities are debts that must be repaid in 18 months or less.

Long-term debt is defined as a residual claim on a firm’s assets.

Current assets are assets with short lives, such as inventory.

Tangible assets are fixed assets such as patents.

Which one of these is a correct definition?

Unlimited life of the firm.

Firms ability to raise cash.