Phillip and Reed have developed a new technology for home computer systems.However,they need to raise a large amount of capital to build the production and support facilities to market their product successfully.Which of the following business types would be best suited to help the company raise the necessary capital to begin production?
A) Corporation
B) Proprietorship
C) Partnership
D) Limited liability partnership

Question

Quizplus · Accepted Answer

Corporations are ideal for raising large amounts of capital because they can issue stocks to investors in exchange for capital. This allows the company to raise funds without taking on debt or sacrificing ownership control. Additionally, corporations offer limited liability protection to their shareholders, meaning their personal assets are protected if the company fails or is sued. This makes investing in a corporation a more attractive option for potential investors.

Phillip and Reed Have Developed a New Technology for Home