Which of the following isare advantages of the corporate for

Which of the following is/are advantages of the corporate form of organization? a. Reduced start-up costs. b. Greater access to capital markets. c. Unlimited liability. d. Single taxation. Why is stocok value maximization superior to profit maximization as a goal for management? What are agency costs? Explain. Identify Seven Mechanisms that can help better align the goals of managers with those of stockholders Comment

Solution

The correct answer is option b.

Corporation is nothing but an entity which has the authority to act as a single person different from its shareholders who are the owners of the business. Since the existence of corporation is different from that of its shareholders as the shareholders are not responsible for the activities and debt of the corporation, they are legally considered as artificial person. The shares are sold and capital is raised from investors in a corporation form of organization so this is one of the advantage of corporation.