Asked by: Rozalia Albueraasked in category: General Last Updated: 27th January, 2020
Which of the following is an advantage of corporations as a form of business ownership?
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.