Advantages of a corporation include:
A)difficulty in raising large sums of capital.
B)double taxation of distributed profits.
C)limited liability of the stockholders for the corporation's debts.
D)each stockholder can conduct business in the name of the corporation.

Question

Quizplus · Accepted Answer

Limited liability of the stockholders for the corporation's debts means that the personal assets of the stockholders are protected from the debts and lawsuits of the corporation, which is a major advantage. Options A, B, and D are not advantages of a corporation; difficulty in raising large sums of capital is a disadvantage, double taxation is a disadvantage, and allowing each stockholder to conduct business in the name of the corporation would create chaos and potential legal issues.

Advantages of a Corporation Include