Advantages of a corporation include:
A)each stockholder can enter into agreements that legally bind all the stockholders.
B)the 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 is a key advantage of a corporation. This means that the personal assets of the stockholders are protected from being used to pay off the corporation's debts. Options A and D are incorrect as they are not true advantages of a corporation. Option B is actually a disadvantage as it refers to the double taxation of distributed profits.

Advantages of a Corporation Include