What are the main advantages and disadvantages of organizing a firm as a corporation?

The advantages are:  (Select all the choices that apply.)

A.
There is no limit on the number of owners a corporation may have, thus allowing the
corporation to raise substantial amounts of capital.

B.
The life of the business can continue beyond the death of any of the owners.

C.
The corporation can use the assets of the owners to pay for corporate liabilities. This attracts
smaller investors to the corporation.

D.
The liability of the owners is limited to the amount of their investment in the firm.

The disadvantages are:  (Select all the choices that apply.)

A.
Income to a corporation is subject to double taxation, once at the corporate level and
again when received by the owners in the form of a dividend.

B.
The life of the business usually ends with the death of any of the owners.

C.
The corporation is more complicated and more expensive to set up than other business
entities.

D.
Corporate liabilities can be passed on to the shareholders, thus making stock ownership primarily
the realm of wealthy investors.

You are a shareholder in a C corporation. The corporation earns

$2.41
per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a
dividend. Assume the corporate tax rate is 38%
and the personal tax rate on (both dividend and non-dividend) income is 20%.
How much is left for you after all taxes are paid? The amount that remains is

$ 1.20 per share.  (Round to the nearest cent.)

You are a shareholder in an S corporation. The corporation earns $1.95

per share before taxes. As a pass through entity, you will receive $1.95
for each share that you own. Your marginal tax rate is 35%.
How much per share is left for you after all taxes are paid?
Amount that remains is $ 1.27 per share. (Round to the nearest cent.)

What is the most important type of decision that the financial manager makes?

A.
The financial manager's most important job is to make the firm's financing decisions.

B.
The financial manager's most important job is to make the firm's payment decisions.

C.
The financial manager's most important job is to make the firm's investment decisions.

D.
The financial manager's most important job is to make the firm's dividend decisions.