Corporations are able to raise large amounts of financial capital because

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Corporations are able to raise large amounts of financial capital because they have limited liability and are treated as a separate individual entity, which allows them to attract investment from a large number of shareholders without exposing them to personal liability for the corporation's debts or legal issues. This, in turn, allows corporations to access a wider pool of financial resources, which makes it easier for them to raise large amounts of capital. Tax breaks, elimination of the problem of separation of ownership and control, and greater ability to monitor performance of decision makers may also be factors, but they are not the primary reason why corporations are able to raise large amounts of financial capital.

Corporations Are Able to Raise Large Amounts of Financial Capital