All of these are advantages of a company structure compared to a sole trader or a partnership, except:Group of answer choiceslimited liability.less government regulation.access to additional capital through the sale of shares.perpetual life.
Question
All of these are advantages of a company structure compared to a sole trader or a partnership, except:Group of answer choiceslimited liability.less government regulation.access to additional capital through the sale of shares.perpetual life.
Solution
The statement that is not an advantage of a company structure compared to a sole trader or a partnership is "less government regulation."
Here's why:
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Limited Liability: This is an advantage of a company structure. In a company, shareholders' liability is limited to the amount they have invested in the company. In a sole trader or partnership, the owners are personally liable for all the debts of the business.
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Less Government Regulation: This is not an advantage of a company structure. Companies are subject to more government regulation than sole traders or partnerships. They must comply with the requirements of the Companies Act, and they are subject to more reporting and disclosure requirements.
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Access to Additional Capital through the Sale of Shares: This is an advantage of a company structure. Companies can raise capital by selling shares, which is not possible for sole traders or partnerships.
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Perpetual Life: This is an advantage of a company structure. A company continues to exist even if the owners die or leave the business. In a sole trader or partnership, the business ends if the owner dies or leaves the business.
Similar Questions
The advantages of a corporation compared to a sole proprietorship or partnership include:Multiple ChoiceThe ability of stockholders to make operating decisions for their company.Less paper work.Limited liability.Lower total taxes.
What benefit does a corporation have that a partnership and a sole proprietorship do not?A.An unlimited life spanB.A single ownerC.The ease of starting the businessD.Fewer rules and regulations
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
Which of the following is an advantage of a Company/Corporation business structure?Group of answer choicesUnlimited liabilityTaxed dependent on incomeLimited liabilityNot very complicated to set up
Which one of the following is an advantage of a sole proprietorship?Group of answer choicesA. Shares debt burden with others in the businessB. Make financial decisions in a teamC. Unlimited access to public findingD. Ease of starting a business
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