Advantages and Disadvantages of Corporations

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What is one of the advantages for a corporation in selling shares?

Becoming tax-exempt

Increasing time and cost of formation

Avoiding government regulations

Strengthening the financial base (correct)

One of the disadvantages of a corporation is:

Ability to easily withdraw assets

No requirement to pay taxes

Time and cost of formation (correct)

Exemption from government regulations

What type of business mainly offers professional skills and expertise as its product?

Hybrid companies

Manufacturing companies

Service companies (correct)

Merchandising companies

Why are corporations subject to greater government regulations compared to other business forms?

To ensure transparency and legal compliance Signup and view all the answers

How do shareholders of a corporation typically receive corporate assets?

When dividends are declared Signup and view all the answers

What characterizes hybrid businesses?

They conduct more than one type of business activity Signup and view all the answers

What are the four factors of production?

Natural resources, labor, capital, and entrepreneurship Signup and view all the answers

Which factor of production involves accepting opportunities and risks of starting and running businesses?

Entrepreneurship Signup and view all the answers

What do corporations contribute to the economy?

Reduced liability for owners Signup and view all the answers

What is a disadvantage of a corporation compared to other business structures?

Higher tax rates Signup and view all the answers

Which type of business activity involves producing goods or services for sale in the marketplace?

Manufacturing products Signup and view all the answers

What does the factor of capital include in the production process?

Both buildings and machinery, as well as money used to buy items Signup and view all the answers

What type of company is San Miguel Corporation an example of?

Manufacturing Signup and view all the answers

Which of the following is a disadvantage of a service business compared to a manufacturing company?

Dependency on skilled employees Signup and view all the answers

What distinguishes merchandising companies from service businesses?

They produce finished goods Signup and view all the answers

Advantages and Disadvantages of Corporations

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Questions and Answers

What is one of the advantages for a corporation in selling shares?

One of the disadvantages of a corporation is:

What type of business mainly offers professional skills and expertise as its product?

Why are corporations subject to greater government regulations compared to other business forms?

How do shareholders of a corporation typically receive corporate assets?

What characterizes hybrid businesses?

What are the four factors of production?

Which factor of production involves accepting opportunities and risks of starting and running businesses?

What do corporations contribute to the economy?

What is a disadvantage of a corporation compared to other business structures?

Which type of business activity involves producing goods or services for sale in the marketplace?

What does the factor of capital include in the production process?

What type of company is San Miguel Corporation an example of?

Which of the following is a disadvantage of a service business compared to a manufacturing company?

What distinguishes merchandising companies from service businesses?

Which type of company might be involved in manufacturing, merchandising, and service activities?

In a manufacturing company, raw materials are converted into:

Which cost is not typically associated with a service business?

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