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Why do you think a single WACC is not applicable to all businesses in a corporation?
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- Is there any consequences if one person corporation (OPC) was not put before or at the end of a supposedly OPC corporate name? If there is, what would it be?What are some reasons why the value of a business other than a small one is generallymaximized when it is organized as a corporation?Do those who are unable or unable to operate under a conventional corporation's limitations have a predisposition toward starting their own business? Is there a reason for this or not?
- What advantages does a corporation have over a sole proprietorship? Whatare the disadvantages of a corporation?Agency problems are said to be inherent in the corporate form of an organization. Why do you think this is the case?Do you think agency problems arise in a sole proprietorship or a partnership?What steps would you take to reduce agency problems in a so-called typical corporation?Which characteristic of a corporation is a disadvantage? a. Mutual agency b. Double taxation c. Limited liability d. None are disadvantages.
- What is a disadvantage of the corporate form? Profit O Revenue Owners have very little influence on business decisions O Limited liabilityWhich of the following characteristics best describes a corporation? a. A business with a single owner b. Is not taxed c. Stockholders not personally liable for entity’s debts d. Not a separate taxable entityWhat would happen to the corporation if it failed to file by-laws? Would it dissolve the corporation?