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Q: What of these corporation allows its shares to be purchased by anyone who chooses to invest in the business?
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What is the advantage of issuing stock?

It allows the corporation to raise capital.


What is advantage of organizing a business as a 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.


Can you set up a business to separate personal credit from business credit in case of filing bankruptcy with your company?

You should consult a lawyer first. One of the benefits of setting up a corporation is expressly that: it allows you (in theory) to separate your personal and business finances. However, this may not always protect you if your business goes bankrupt; in some cases creditors are allowed to reach your personal finances anyway. Setting up a corporation when the business is already at the point of bankruptcy may be viewed as an attempt at fraud... which is why you should talk to a lawyer first; any inclination the court may have had to treat you leniently is going to be wiped out by any hint of fraudulent intent.


What are the main benefits of business outsourcing?

There are a number of benefits of business outsourcing. Some benefits are that it allows a company to focus on core activities, it is cost efficient, overhead is reduced and it allows for staffing flexibility.


What are some samples of business objectives?

Some samples of business objectives could be sales objectives. Sales objectives allow one to gain increased sales volumes. Increasing productivity is another, it allows for better profits. Improving the quality of a product is good business objective, it allows for better quality control and ensures repeat business.

Related questions

What corporation allows its shares to be purchased by anyone who chooses to invest in the business?

Public Limited Company


Which corporations allows its shares to be purchased by anyone who chooses to invest in the business?

publicly owned corporation


What corporations allows its shares to be purchased by anyone who chooses to invest in the business?

Public Limited Company


Which windows 7 edition is intended for business user and allows you to purchase multiple site licenses?

which window 7 edtion is intended for business users and allows lyou to purchased multiple site licenses


What is family corporation?

A family corporation is a type of business entity that is owned and operated by members of a family. It is usually structured in a way that allows family members to have ownership and control over the company. Family corporations are commonly used to pass down wealth and assets to future generations and maintain family control over the business.


What does free business checking help to manage in a corporation?

Free business checking allows small business and corporations to easily manage their funds. Additionally, these services help businesses to expand by offering financial tools specifically designed for their businesses.


What is the advantage of issuing stock?

It allows the corporation to raise capital.


Does LexisNexis conduct business in Germany?

LexisNexis is an online database that provides information and technology to legal, business and government organizations. This allows for rapid and well informed decision making. LexisNexis was purchased by Wolters Kluwer in Cologne, Germany.


When did s-corporations come into existence?

S-corporations were introduced in 1958 through the Small Business Investment Act. They are a specific type of corporation that allows for pass-through taxation, similar to partnerships.


What business organizations is most likely to exist after the death of the founder?

A business organization that is most likely to exist after the death of the founder is a corporation. Unlike other types of business structures, such as sole proprietorship or partnership, corporations have a separate legal entity that can exist beyond the lifetime of its owners. This allows for the seamless transfer of ownership and continuity of business operations. Additionally, corporations can also raise capital through the sale of stocks, further ensuring their longevity.


What does the Bankruptcy Chapter 11 state?

Chapter 11 bankruptcy is for corporation entities or partnerships, including home businesses and small business owners. Chapter 11 allows one to make a debt re-organization plan designed to keep a business operational while debts are being repaid.


What accounting principle allows for repair tools to be expensed when purchased?

Materiality