16. Which of the following is an advantage of ownership of a corporation compare

Question

16. Which of the following is an advantage of ownership of a corporation compared to that of a sole proprietorship? (Points : 5)

The owners of the corporation have unlimited liability for the firm's debts.

It is the simplest to start.

The corporation has an unlimited life.

Dividends received by the corporation's shareholders are tax-exempt.

It is more difficult to transfer ownership in a corporation.

Question 17. 17. The mixture of debt and equity used by the firm to finance its operations is called __________. (Points : 5)

working capital management

financial depreciation

agency cost analysis

capital budgeting

capital structure

Question 18. 18. The process of planning and managing a firm's long-term investments is called _____________. (Points : 5)

working capital management

financial depreciation

agency cost analysis

capital budegting

capital structure

Question 19. 19. The equity shares of most of the large firms in the United States trade in organized auction markets. The largest such market is the __________. (Points : 5)

Paciic Stock Market

American Stock Market

Philadelphia Stock Market

National Association of Securities Market

New York Stock Exchange

Question 20. 20. The mechanism by which unhappy stockholders can act to replace existing management is called a ___________. (Points : 5) agency problem proxy fight agency order auction order secondary fight

Explanation / Answer

16.

The corporation has an unlimited life.

as based on going concern concept

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