Question

question 20 of 25
policies
current attempt in progress
which of the following is not an advantage of the corporate form of business organization?
transferability of ownership
unlimited life
unlimited personal liability for stockholders
limited liability of stockholders

Explanation:

To determine the answer, we analyze each option:

• Transferability of ownership: A key advantage of corporations, as shares can be bought/sold.
• Unlimited life: Corporations exist beyond the life of owners, an advantage.
• Unlimited personal liability for stockholders: This is a disadvantage (e.g., in sole props/partnerships), not an advantage of corporations (which have limited liability).
• Limited liability of stockholders: A major advantage, protecting personal assets.

So the option with unlimited personal liability is not an advantage.

Answer:

C. Unlimited personal liability for stockholders