Which of the following statements is/are advantages of incorporation?
A)Access to capital markets
B)Limited liability
C)Unlimited life
D)All of the above

Question

Quizplus · Accepted Answer

Incorporation provides all three advantages mentioned:
A) Access to capital markets: As a separate legal entity, a corporation can issue stocks and bonds to raise capital and access financial markets.
B) Limited liability: Shareholders are not personally responsible for the debts and obligations of the corporation. They are only liable up to the amount they have invested in the company.
C) Unlimited life: A corporation has a perpetual existence, meaning its life is not tied to the life of its owners or directors. It can continue to operate even after the death or departure of its founders or key personnel.

Which of the Following Statements Is/are Advantages of Incorporation