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Chapter 1 Question 3- What is the primary disadvantage of the corporate form of organization? Name at least two advantages of corporate organization.
Chapter 1 Question 11- Evaluate the following statement: Managers should not focus on the current stock value because doing so will lead to an overemphasis on short-term profits at the expense of long-term profits.
Costs. The main disadvantage of a corporate form of organization is the cost required for running the business. There are many different areas where money has to be spent to get a corporate organization going. For instance, the incorporation of the corporate organization with the state in which it operates,