Business Studies

Advantages and Disadvantages of Corporations

len Alfred Ajibola - 13th June, 2022 @ 04:30 PM

Topics in Business Studies

Advantages and Disadvantages of Corporations Advantages and Disadvantages of Limited Liability Company Advantages and Disadvantages of Partnership Credit card and Debit card explained with their similarities and differences Business Structure: What is a business structure? Advantages and Disadvantages of Franchise What is a franchise? Types of franchise Corporation explained with its types What is Limited Liability Company? What is Partnership Business? Types of Partnership What is business studies? Concept of business Elements of Management What is Management? Importance of Management Advantages and Disadvantages of Air Transport Advantages and Disadvantages of Rail Transport Cheque explained with its terminologies Cheque: Types of Cheque Cheque: Characteristics of Cheque Advantages and Disadvantages of Cheque What is Advertising? Types of Advertising


Academic Questions in Business Studies

Please click here to see all Questions and Answers

An accounting system focused primarily on a balanced debit and credit side is termed _____.

  • A. Ledger system

  • B. Journal system

  • C. Double entry system

  • D. Balance sheet system

  • E. Principle of accounting system

  • F. Balanced accounting system

With regards to money, which of the following statement is incorrect?

  • A. Money is crucial for the survival of every human being

  • B. Money is completely advantageous

  • C. Money is defined as anything that is generally accepted as a medium of exchange

  • D. Monopoly is said to exist when money and wealth exists in the hands of a few

  • E. Excess money in an economy can lead to inflation

  • F. When a person receives money that isn't commensurate with the job he or she had done, then that's underemployment

Which of the following statement is wrong with regards to business?

  • A. Business involves the exchange of something for another thing or money

  • B. Business is an economic activity

  • C. In business, profit goes beyond money

  • D. Businesses do not have social responsibilities to their customers

  • E. The exchange of services is an aspect of business

  • F. Businesses can be affected by government policies

Consumer _____ are the laws and methods put in place by various agencies so that consumers can enjoy maximum satisfaction on the goods they buy and services rendered to them.

  • A. Protection
  • B. Policy
  • C. Rights
  • D. Defence
  • E. Guide
  • F. Safety

Which of the following is not a characteristics of business?

  • A. The buyer and seller must always come into a contract agreement

  • B. Risk from unforseen circumstances is involved

  • C. They are subject to policies made by the government

  • D. All business transaction is aimed at making profit

  • E. It requires a discontinuous transaction between the buyer and the seller

  • F. Investments are required to begin a business

Which of the following is not a Right of Consumer Protection?

  • A. Right to Education
  • B. Right to Choose
  • C. Right to Safety
  • D. Right to the Good things of Life
  • E. Right to be Assured
  • F. Right to Compel

Which of the following is NOT a government agency of consumer protection?

  • A. Ministry of Sports
  • B. Ministry of Commerce
  • C. Consumer Protection Council
  • D. Ministry of Health
  • E. Ministry of Environment
  • F. National Drug Law Enforcement Agent

Define Consumer Protection.


What is a Corporation?

A corporation is a business structure and legal entity that comprises a group of people or investors who buy shares as an evidence of being a member of the corporation. To simply put it, the corporation is a business structure owned by shareholders and managed by a Board of Directors.

Please read the introduction to business structure here.

 

Corporation can be profit or nonprofit oriented. Generally, corporations exist in two types or forms. These are:

  1. C Corporation

  2. S Corporation

Please read the introduction to corporation, types and explanations here.

 

Advantages of a Corporation

  1. Liability is limited to the amount invested by the shareholders.
    Please read on limited liability company here.

  2. Easy transfer of ownership via the selling of shares and stocks.

  3. Capital can be easily raised through the sale of stocks and bonds.

  4. A corporation continues to exist after the death of its owners (shareholders).
    Please read on sole proprietorship here.

  5. There is no double taxation in an S Corporation.

  6. The shareholders can receive tax-free benefits.
    You can read on community service and it's benefits here.

  7. The C Corporation has an unlimited number of investors.
    You can read on the advantages and disadvantages of a franchise business structure here.

 

Disdvantages of a Corporation

  1. Shareholders may pay tax twice on their income and dividends. This is termed double taxation.
    You can read on the double entry system here.

  2. The investors may have very little knowledge on how the corporation is managed.

  3. Forming a corporation can be quite rigorous and expensive.
    Please read on business partnership here.

  4. States will typically charge an annual franchise fee for corporations.
    Please read on franchise and types of franchise here.

  5. Only one class of stock is allowed in an S corporation.

  6. The maximum number of shareholders in an S corporation is 100.

  7. There are limitations in the type of stock in an S corporation.

  8. The tax filing process for a corporation can be complex.

Need more answers to this topic? Please enter your search below:

Kindly share this article via the links below:


len

Alfred Ajibola is a Medical Biochemist, a passionate Academician with over 10 years of experience, a Versatile Writer, a Web Developer, a Cisco Certified Network Associate and a Cisco CyberOps Associate.

Please contact Alfred via the above whatsapp link for a comprehensive online academic coaching in Biology, Chemistry, Basic Science and ICT


Click here to read the amazing features of the Len Academy Smart School Software. However, contact Alfred through the above whatsapp link if you require a standard website for your business at an affordable price


Please click here to follow Len Academy on Google News.

Please like and follow our official facebook page here for great educational write-ups.

You can follow Len Academy on twitter here.Thank you.


Please Register here or Login here to contribute to this topic by commenting in the box below.


Amazing facts in Business Studies

The world's 100 richest people earned enough money in 2012 to end global poverty four times over


NOTABLE POINTS IN Business Studies

Consumer protection refers to the ways or methods through which consumers enjoy maximum satisfaction from the goods they buy and services rendered to them.

The agencies of consumer protection assists in protecting the consumer rights. These agencies may also be referred to as the organs of consumer protection. Basically, we have three of them, they are:

  1. Government Agencies

  2. Independent Agencies

  3. Legislation

Please read on consumer protection here

One of the responsibilities of the government of every nation is to set up agencies or organizations that will protect the interest of the consumers and invariably, the people.

Below are some of the government agencies of consumer protection:

  • National Drug Law Enforcement Agency (NDLEA)
  • National Agency for Food, Drug Administration and Control (NAFDAC)
  • Consumer Protection Council (CPC)
  • Rent Tribunal
  • Ministry of Health
  • Ministry of Commerce
  • Ministry of Transportation
  • Ministry of Environment
  • National Wages and Salaries Commission

Please read on the government agencies of consumer protection here