Asked by: Rozalia Albuera
asked in category: General Last Updated: 27th January, 2020

Which of the following is an advantage of corporations as a form of business ownership?

Two key advantages of the corporate form over other forms of business organization are unlimited liability and limited life. c. A corporation is a legal entity that is generally created by a state; its life and existence is separate from the lives of its individual owners and managers.

Click to see full answer.

Beside this, which of the following is an advantage of corporations?

The advantages of the corporation structure are as follows: Limited liability. The shareholders of a corporation are only liable up to the amount of their investments. The corporate entity shields them from any further liability, so their personal assets are protected.

Likewise, what are the main forms of business ownership? Business Plan Tutorial: Types of Business Ownership

  • Sole Proprietorship. A business owned and operated by a single individual -- and the most common form of business structure in the United States.
  • Partnership. A business that is owned and operated by two or more people -- and the least used form of business organization in the United States.
  • Private Corporation.

Likewise, what is a major disadvantage of the corporate form of ownership?

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 transfer-ability, ability to raise capital, and unlimited life.

Which are advantages and which are disadvantages of the corporate form of organization?

Disadvantages: unlimited liability, limited life, difficulty in transferring ownership, hard to raise capital funds. Some advantages: simpler, less regulation, the owners are also the managers, sometimes personal tax rates are better than corporate tax rates. Name at least two advantages of corporate organization.

37 Related Question Answers Found

Which form of business ownership is the most common?

What type of ownership is limited to 100 owners?

What is double taxation quizlet?

What does double taxation mean quizlet?

Which form of business is the easiest to start?

Which of the following is considered to be an external user of accounting information?

Which one of the following is an advantage of being a limited partner?

Which form of business ownership is the most common in the United States quizlet?

Who are the real owners of a corporation?

What are the advantages and disadvantages of cooperatives?

What are the advantages and disadvantages of incorporation?

What are the pros and cons of a corporation?

What do you mean by corporation?

What is the purpose of corporation?