Q19E_3 - Horngren'S Financial And Managerial Accounting

Question

Identifying advantages and disadvantages of a corporation

Following is a list of advantages and disadvantages of the corporate form of business. Identify each quality as either an advantage or a disadvantage.

c. Transfer of ownership is easy.

Step-by-Step Solution

Answer

Transfer of ownership is easy is an advantage of a corporation.

Step 1: Basic Introduction

A stockholder or shareholder is an individual, organization, or institution that owns at least one stock of a corporation's share that is known as equity of the corporation.

Step 2: Identification of quality

To transfer the ownership of a corporation shareholder needs to sell its allotted shares in the recognized stock exchange and thus it is an easy process of transferring ownership.