Which of thee following is an advantage corporations enjoy over partnership?

Answer 1

The biggest advantage is that the liability of the owners of the corporations is limited to the extent of their financial involvement. There are many advantages to being a corporation. These advantages include name protection, additional credibility, tax breaks, and perpetual existence.

Answer 2

A corporation has severalÊadvantages Êas compared to sole proprietorship. Its advantages includeÊbeing aÊlegal entity, having Êlimited liability, and continuity. In addition, Êit hasÊaÊwider source of capital.

Answer 3

Limited Liability - creditors can't claim an owner's/stockholder's personal assets

Ease of acquiring capital - easy since there are many owners who can provide capital

Transferable ownership rights - ownership rights or shares can be sold on Stock Market without approval of other stockholders

Continuous life - existence of corporation does not depend on existence of owners or their withdrawal

Separate Legal Existence - has rights like a person, can sue and be sued....etc.

Answer 4

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.

Answer 5

Corporations have an easier time raising money to start or expand a business

Answer 6

The answer is corporations have an easier time raising money to start or expand a business.

Answer 7

corporations have limited liability