Which of the following would not be considered an advantage of the corporate form of organization?
A. Limited liability of stockholder's.
B. Seperate legal exsistence.
C. Continuous life.
D. Government regulation.

Respuesta :

Answer:

D. Government regulation

Explanation:

Having the government regulating a corporate form of organization bus a disadvantage. A corporate organisation is an organization that exists separately on its own as a legal entity. It's advantages includes limited liabilities for people that have shares there, and also ease in ownership transfer. It is guided by a board of directors.

Options A B and C are all advantages.

The disadvantage of the corporate form of organization is Option D government regulation.

Because Interest rates are influenced by government policy, and a rise in interest rates raises the cost of borrowing for businesses.

The other Options are incorrect as:

  • Option A is incorrect as limited liability is an advantage of the corporate form of organization.

  • Option B is incorrect as separate legal existence is an advantage of the corporate form of organization.

  • Option C is incorrect as continuous life is an advantage of the corporate form of organization.

Thus Option D is correct Option for disadvantage of corporate firm.

For more information about corporate form of organization refer to the link:

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