Advantages of the corporate form of business include which of the following?

I. Double taxation

II. Ability to raise capital

III. Ability to transfer ownership

IV. More paperwork

V. Limited liability

A) II.

B) II., III., V.

C) I., II., III.

D) II., IV., V.

Answer: B

Which of the following statements regarding the corporate form of business is correct?

A) The disadvantages are that generating capital is difficult and that owners have limited liability.

B) Disadvantages are that the business is subject to government regulations and double taxation on its income.

C) One disadvantage is that ownership is easy to transfer.

D) All of the other answer choices are correct.

Answer: B

The articles of incorporation describe:

A) The nature of the firm's business activities.

B) The shares of stock to be issued.

C) The initial board of directors.

D) All of the other answer choices are correct.

Answer: D