Pat Kabza, a student, asks for your help in understanding the different corporation characteristics.
(a) Explain the following characteristics to Pat and identify whether they are an advantage or a disadvantage for a large, publicly traded corporation:
(1) Separate legal existence,
(2) Limited liability of shareholders,
(3) Transferable ownership rights,
(4) Ability to acquire capital,
(5) Continuous life,
(6) Separation of management and ownership,
(7) Government regulations,
(8) Income tax.
(b) Would your answers to part (a) change if you were commenting about the advantages and disadvantages for a small, private corporation rather than a large, publicly traded corporation? Explain.