Which of the following is an advantage of corporate form?
Advantages of C Corporations The owners’ assets are protected from the debts and liabilities of the corporation . Shareholders are not held liable for business losses. Easier to raise capital. A corporation can have an unlimited number of investors.
Which is an advantage of the corporate form of business ownership quizlet?
The corporate form has the advantage of unlimited liability. The corporate form is preferred over the sole proprietorship because a corporation is easier to form and faces less regulation. The corporate form has the disadvantage of double taxation relative to a sole proprietorship.
Which of the following is an advantage of the corporate form of business when compared to sole?
Compared to partnerships and sole proprietorships, a major advantage of the C(conventional) corporation as a form of business ownership is that it: Has the ability to raise more money. Which of the following is normally considered a disadvantage of the corporate form of business ? Double taxation of earnings.
What is the advantage and disadvantage of corporation?
Advantages of a corporation include personal liability protection, business security and continuity, and easier access to capital . Disadvantages of a corporation include it being time-consuming and subject to double taxation, as well as having rigid formalities and protocols to follow.
What are the advantages of a close corporation?
Pros of Close Corporations Fewer formalities. The most obvious advantage of a close corporation is that there are fewer rules to follow. Limited liability. More shareholder control . More freedom . Time and money . Taxation. More shareholder responsibility. Stock concerns.
What are the two major advantages to the corporate form of ownership?
Perhaps the major advantage of the corporate form is limited liability – stockholders are not liable for the corporation’s debts beyond the amount they paid for its stock. Other important advantages include ease of raising capital, ease of transfer of ownership, perpetual life, and specialized management.
What is a corporation owned by?
A corporation is a business entity that is owned by its shareholder (s), who elect a board of directors to oversee the organization’s activities. The corporation is liable for the actions and finances of the business – the shareholders are not.
Why would a person choose to buy a franchise quizlet?
explanation: Franchisees often report the following advantages: management training and support; brand-name appeal; standardized quality of goods and services; national advertising programs; financial assistance; proven products and business formats; centralized buying power; site selection and territorial protection;
Which statement is an attractive benefit of a corporation?
The most attractive feature of a corporation is limited liability, which means that the shareholders (owners) cannot be held personally liable for the debts and obligations of the corporation .
Is the most common form of business ownership?
A sole proprietorship is the most common form of business organization . It’s easy to form and offers complete control to the owner . But the business owner is also personally liable for all financial obligations and debts of the business .
Is a major disadvantage of the corporate form of business?
The primary disadvantage of the corporate form is the double taxation to shareholders of distributed earnings and dividends. Some advantages include: limited liability, ease of transferability, ability to raise capital, unlimited life, and so forth.
What is the major disadvantage of a corporation?
The main disadvantage of corporation is taxation. There is no denying that a corporation will offer your business all sorts of benefits. As a corporation , you will be required to pay taxes on your profits if your income is distributed to the shareholders.
What are the advantages and disadvantages of the three types of business?
There are three basic forms of business ownership: sole proprietorship , partnership and corporation . Each of these forms of business organization has advantages and disadvantages in such areas as setting up the company, paying taxes and assessing liability for business debts.
What are the 4 types of corporations?
Four main types of corporations are designated as C, S, limited liability companies, and nonprofit organizations.