Compared to partnerships and sole proprietorships,a major advantage of a public corporation as a form of business ownership is that it: A)qualifies for simplified tax treatment. B)is easier and less expensive to form. C)creates unlimited liability of owners. D)has the ability to raise more money.

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Quizplus · Accepted Answer

A major advantage of a public corporation as a form of business ownership is that it has the ability to raise more money. This is because the company can sell shares of stock to the public and raise funds for expansion and growth. Partnerships and sole proprietorships do not have this ability as they are limited to the funds that the owners can contribute themselves or borrow from lenders. Simplified tax treatment and ease of formation are not advantages of public corporations, and unlimited liability is actually a disadvantage as it exposes owners to personal financial risk.

Compared to Partnerships and Sole Proprietorships,a Major Advantage