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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 is a profession corp?

A professional corporation (PC) is a specific type of corporation formed by licensed professionals, such as doctors, lawyers, or accountants, to provide their services. This structure allows professionals to limit their personal liability for business debts and malpractice claims, protecting their personal assets. PCs are subject to specific regulations and must adhere to state laws governing professional practices. Additionally, they often enjoy certain tax benefits compared to other business structures.


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.

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


Can you have a Doing Business As (DBA) name under a corporation?

Yes, a corporation can have a Doing Business As (DBA) name, which is also known as a trade name or fictitious name. This allows the corporation to operate under a different name than its legal name.


What is transitional corporation?

A transitional corporation is a type of business entity that is transitioning from one form of organization to another, such as from a sole proprietorship to a corporation. This process usually involves changing the legal structure, ownership, and operational characteristics of the business. It allows for a seamless shift while maintaining continuity in operations.


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.


Which is an advantage of organizing a business as a corporation?

One advantage of organizing a business as a corporation is limited liability protection for its owners, meaning their personal assets are generally protected from business debts and legal liabilities. Additionally, corporations can raise capital more easily through the sale of stock, which can attract investors. This structure also allows for continuity, as the corporation can continue to exist independently of changes in ownership or management.


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 does s in s corp stand for?

The "S" in S Corporation stands for "Small Business." An S Corporation is a special type of corporation that allows income to be passed through to shareholders to avoid double taxation, while still providing the liability protection of a corporation. This designation is available to eligible domestic corporations that meet specific requirements set by the IRS.


What is one of the business organization?

One common type of business organization is a corporation. A corporation is a legal entity that is separate from its owners, providing limited liability protection to its shareholders. It can raise capital through the sale of stock, and it often has a formal structure with a board of directors overseeing its operations. This structure allows for easier transfer of ownership and can enhance credibility in the marketplace.


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.