Businesses were once formed with the sole purpose of filling a specific need and making money. If the firm was no longer needed, it was dissolved. What are the positives of this process?

Question

Quizplus · Accepted Answer

The business owner would need to determine a new business and go through all processes to form the business, which is not ideal. The employees may have a hard time finding new employment, and the investors, while they do receive their share of the assets, no longer have the option to receive any future possible earnings. The benefit of the firm being dissolved is simply that it does not continue if it is not profitable.

Businesses Were Once Formed with the Sole Purpose of Filling