Which of the following are advantages of the corporate form of organisation?
I.ability to raise large sums of equity capital
II.ease of ownership transfer
III.both profits and dividends are taxed
IV.limited liability for all owners

Question

Quizplus · Accepted Answer

I. The corporate form of organisation allows a company to raise large sums of equity capital by issuing shares to investors.
II. Ownership of a corporation is represented by shares of stock, which can be easily bought, sold or transferred between investors.
III. This statement is incorrect as both profits and dividends in a corporation are not taxed twice. Profits are taxed at the corporate level and dividends are taxed at the individual level.
IV. The owners (shareholders) of a corporation enjoy limited liability, meaning that they are not personally responsible for the company's debts or obligations.

Which of the Following Are Advantages of the Corporate Form