FIN/571 - One disadvantage of the corporate form of business ownership

One disadvantage of the corporate form of business ownership is the:

• Difficulties encountered when changing ownership.

• Double taxation of profits.

• Limited liability protection provided for all owners.

• Unlimited life of the firm.

• Firms ability to raise cash.

You plan to invest $6,500 for three years at 4 percent simple interest. What will your investment be worth at the end of the three years?

• $6,760.00

• $7,311.62

• $6,941.11

• $7,280.00

• $7,250.00

Which one of these is correct???

• Net working capital equals current assets plus current liabilities.

• Current liabilities are debts that must be repaid in 18 months or less.

• Long-term debt is defined as a residual claim on a firm's assets.

• Current assets are assets with short lives, such as inventory.

• Tangible assets are fixed assets such as patents.

Which one of these is a correct definition?

• 
  

• Unlimited life of the firm.

• Firms ability to raise cash.