Illustrate the advantage and disadvantage of Corporations

Illustrate the advantage and disadvantage of Corporations?

E

Expert

Verified

Advantages: improved ability to raise financial capital (money); defining and comparing stocks and bonds; limited liabilities; corporations have a permanence that is conducive to long-run planning and growth.

Disadvantages: red tape and expense in obtaining a corporate charter; unscrupulous business owners sometimes avoid responsibility for questionable business activities.

   Related Questions in Business Economics

  • Q : Why Public or social goods not be

    Why Public or social goods not be produced through the market?

  • Q : External costs and external benefits

    Explain the impact of external costs and external benefits on resource allocation

  • Q : Elucidate the gains that have occurred

    Elucidate the gains that have occurred using the resources as before specialization?

  • Q : What are the main sources of growth

    What are the main sources of growth?

  • Q : Reduce price differences by arbitrage

    When government intervention is not present, than arbitrage: (w) will reduce price differences when similar good sells at various prices within separate markets. (x) results into economic losses for traders. (y) causes high economic profits for mercha

  • Q : Loathed monopolization and viewed of

    Adam Smith and most of the typical economists who followed instantly in his footsteps: (i) viewed monopoly as no big problem. (ii) encouraged monopolies due to their research and development abilities. (iii) thought monopoly power was a communist plot

  • Q : Determine the clearest illustration of

    The clearest illustration of economic inefficiency would be: (w) maintaining a warehouse full of pet rocks within hopes such that someday the fad will return. (x) pet rocks being unavailable to people willing to pay a price that exceeds the marginal s

  • Q : What is the opportunity cost of your

    Suppose you arrive at a store expecting to pay $100 for an item, but learn that a store two miles away is charging $50 for it.  Would you drive there and buy it?  How does your decision benefit you?  What is the opportunity cost of your decision?  Now suppose you arrive at a s

  • Q : Explain and give an illustration

    Explain and give an illustration of (a) the fallacy of composition; and (b) the “after this, therefore because of this” fallacy.  Why are cause-and-effect relationships difficult to isolate in the social sciences?

  • Q : What are the benefits and costs of

    What are the benefits and costs of Marginalism?

©TutorsGlobe All rights reserved 2022-2023.