QAEconomics › Which of the following is a benefit of the corporate form of business?
Q

Which of the following is a benefit of the corporate form of business?

a. raising large amounts of capital is easier

b. ownership interests are easily transferred

c. limited liability of the owners (stockholders)

d. all of the above

A

Answer: d. all of the above

The corporate form of business is one that is fraught with dangers, and also has its numerous advantages. Some of the advantages of the corporate form of business are the ability to easily raise large amounts of capital by sharing bonds and shares, the easy transferability of the ownership position and all it entails, as well as the presence of limited liability to protect the shareholders from added risks.

 

1 year ago
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