The form of ownership with the greatest ability to accumulate capital is the:
A)sole proprietorship.
B)partnership.
C)joint venture.
D)corporation.

Question

Quizplus · Accepted Answer

A corporation has the greatest ability to accumulate capital because it can issue stocks and bonds, which can be sold to investors to raise a large amount of capital. It also has the advantage of limited liability, which protects the personal assets of the owners from the debts and liabilities of the corporation. Sole proprietorships and partnerships are limited in their ability to raise capital because they rely on the personal assets of the owner(s) and may find it difficult to attract outside investors. Joint ventures are temporary partnerships formed for a specific project and are not a form of ownership that can accumulate capital.

The Form of Ownership with the Greatest Ability to Accumulate