Which one of the following is not considered an advantage of the company form of organisation? Group of answer choices Government regulation Separate legal existence Limited liability of shareholders Continuous life
Question
Which one of the following is not considered an advantage of the company form of organisation? Group of answer choices
Government regulation
Separate legal existence
Limited liability of shareholders
Continuous life
Solution
The option that is not considered an advantage of the company form of organisation is "Government regulation".
Here's why:
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Separate legal existence: This is an advantage because it means the company is considered a separate entity from its owners. This allows the company to own property, enter into contracts, and sue or be sued in its own name.
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Limited liability of shareholders: This is also an advantage because it means that shareholders are only liable for the company's debts up to the amount they have invested in the company. Their personal assets are not at risk.
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Continuous life: This is an advantage because it means the company can continue to exist even if the owners change. This provides stability and longevity.
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Government regulation: This is generally not considered an advantage because it can impose restrictions and requirements on the company that can be costly and time-consuming to comply with. It can also limit the company's freedom to operate as it wishes.
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