0
Investors only risk losing the money they themselves put into a company.
When a person owns and manages a business by himself (sole proprietorship), he is liable to pay for the company's losses with his own capital and assets. If he takes the company public (corporation) and allows shares to be bought by investors, he is only limited to lose capital from the business while his personal assets remain protected. The other advantage is that in a corporation, the company will still exist if one or more owners or executives pass away and will not be affected financially.
BUSINESS ADVANTAGES OF ORGANIZING A BUSINESS AS A CORPORATION
1 - People who establish a corporation have a ready access to major sources of loans and advances e.g. banks and financial institutions.
2 - A corporation can issue its shares to public to expand its business whereas partnership and proprietorship cannot issue shares.
3 - Since a corporation employs a large number and variety of people having different expertise, it can expand and develop its business more efficiently and effectively than any other mode of business.
4 - In case of a manufacturing corporation, it can purchase raw materials on short term as well as long term credit as suppliers place a significant reliance on corporations regarding their payments.
5 - Corporations can purchase bulk supplies of required materials and supplies at cheaper rates.
Izaiah Lubowitz
Add your answer:
Earn +20 pts
Which of these is a major advantage of a coporation?
The major advantage of a corporation is that one has its legal recognition as a business entity which is a must requirement to grow one's business. One can register its business and can have legal advantages of registration. http://www.aidandtrade.com/
Which of these is a major advantage of a corporation?
Limited liability is a major advantage of a corporation.
What is an advantage the owners of sole proprietorship enjoy over the owners of a corporation?
Sole proprietors get to make all of the business decisions themselves.
What Advantage the owners of a sole proprietorship enjoy over the owner of a corporation?
Sole proprietors get to make all of the business decisions themselves.
Corporation advantages and disadvantages?
An advantage to having a corporation is limited liability. A disadvantage to having a corporation is the fact that income is taxed twice.
The form of business organization that has the advantage of limited liability is a?
corporation
Which is an advantage of organizing as a business coporation?
An individual with a business should consider making that business a corporation. There are several advantages for doing this. One crucial reason is that if the business causes damages to another party, the individual cannot be sued, the corporation will be sued. Also, if properly incorporated, the company can take steps to sell stock in the company to raise funds. Also, by incorporating in states where there are no business taxes, it saves money. Additionally there is a bit of prestige attached to being incorporated.
What financial advantage does a corporation have over sole proprietorships and partnerships?
A corporation is perceived as having substantial revenues where a small business wouldn't be. A corporation can likely get financed quicker than a person who has a small business.
What is the advantage of a corporation?
A corporation has limited liability protection, and are typically not personally responsible for business debts. A corporation can live forever, even if an owner dies or sells interest, the corporation can still exist.
Which of these is a major advantage of a coporation?
The major advantage of a corporation is that one has its legal recognition as a business entity which is a must requirement to grow one's business. One can register its business and can have legal advantages of registration. http://www.aidandtrade.com/
Which of these is a major advantage of a corporation?
Limited liability is a major advantage of a corporation.
What is an advantage of organizing a business as an corporation?
Investors only risk losing the money they themselves put into a company.When a person owns and manages a business by himself (sole proprietorship), he is liable to pay for the company's losses with his own capital and assets. If he takes the company public (corporation) and allows shares to be bought by investors, he is only limited to lose capital from the business while his personal assets remain protected. The other advantage is that in a corporation, the company will still exist if one or more owners or executives pass away and will not be affected financially.BUSINESS ADVANTAGES OF ORGANIZING A BUSINESS AS A CORPORATION1 - People who establish a corporation have a ready access to major sources of loans and advances e.g. banks and financial institutions.2 - A corporation can issue its shares to public to expand its business whereas partnership and proprietorship cannot issue shares.3 - Since a corporation employs a large number and variety of people having different expertise, it can expand and develop its business more efficiently and effectively than any other mode of business.4 - In case of a manufacturing corporation, it can purchase raw materials on short term as well as long term credit as suppliers place a significant reliance on corporations regarding their payments.5 - Corporations can purchase bulk supplies of required materials and supplies at cheaper rates.
Which of the following is not an advantage of a corporation over a partnership?
Corporations have an easier time raising money to start or expand a business.
What is a major advantage of a corporation?
A major advantage of a corporation is the limited liability of the owners. When a stockholder dies, the corporation is not dissolved.
What is an advantage the owners of a sole proprietorship enjoy over the owner of a corporation?
Sole proprietors get to make all of the business decisions themselves.
Is an advantage the owners of a sole proprietorship enjoy over the owners of a corporation?
Sole proprietors get to make all of the business decisions themselves.
What is an advantage the owners of sole proprietorship enjoy over the owners of a corporation?
Sole proprietors get to make all of the business decisions themselves.
