Which of the following reasons is most responsible for corporations being the most important form of business organization in the United States?
A)Corporations have limited life.
B)Stockholders have unlimited liability.
C)Corporations are subject to less government regulation than the other forms of business organization.
D)Corporations have the ability to raise larger sums of capital than the other forms of business organization.
E)Corporations are subjected to less taxation than the other forms of business organization.

Question

Quizplus · Accepted Answer

Corporations have the ability to raise larger sums of capital than the other forms of business organization, such as partnerships or sole proprietorships. This is because they can sell shares of stock to investors, allowing for a larger pool of funds. This access to funding is a significant advantage and a primary reason why corporations are the most important form of business organization in the United States.

Which of the Following Reasons Is Most Responsible for Corporations