E14-1 Advantages and disadvantages of a company [5–10 min] Following is a list of the advantages and disadvantages of the corporate form of business: 1 Ownership and management are separated. 2 Entity has indefinite life. 3 Transfer of ownership is easy. 4 Shareholders' liability is limited. 5 Possible double taxation. 6 Entity can raise more money than a partnership or proprietorship. 7 Government regulation is expensive. Requirement Identify each quality as either an advantage or a disadvantage.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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E14-1 Advantages and disadvantages of a company [5–10 min]
Following is a list of the advantages and disadvantages of the corporate form of business:
1 Ownership and management are separated.
2 Entity has indefinite life.
3 Transfer of ownership is easy.
4 Shareholders' liability is limited.
5 Possible double taxation.
6 Entity can raise more money than a partnership or proprietorship.
7 Government regulation is expensive.
Requirement
Identify each quality as either an advantage or a disadvantage.
Transcribed Image Text:E14-1 Advantages and disadvantages of a company [5–10 min] Following is a list of the advantages and disadvantages of the corporate form of business: 1 Ownership and management are separated. 2 Entity has indefinite life. 3 Transfer of ownership is easy. 4 Shareholders' liability is limited. 5 Possible double taxation. 6 Entity can raise more money than a partnership or proprietorship. 7 Government regulation is expensive. Requirement Identify each quality as either an advantage or a disadvantage.
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