Question 34
Business OrganisationsA disadvantage of the corporate form of business is the
- A.risk of the owners of loss of personal effects if the business should fail
- B.ability of the corporation to raise financial resources
- C.limited life span of the corporation
- D.problems presented by separation of ownership from control
- E.none of the above.
Show the answer and explanation
Answer: D (problems presented by separation of ownership from control)
Explanation
In a company the shareholders own it but managers run it, and their interests may differ.