The primary reason entrepreneurs choose to incorporate is because of:
A)the corporation's ability to attract capital.
B)the need to attract top quality management talent to grow the business.
C)the lower tax rates inherent in the corporate form of ownership.
D)the limited liability of stockholders.

Question

Quizplus · Accepted Answer

Incorporation provides limited liability protection for stockholders, which means personal assets are protected if the business incurs debt, lawsuits, or other liabilities. This can be a significant reason for entrepreneurs to choose to incorporate. While the other options may also be benefits of incorporating, limited liability is typically the primary driver.

The Primary Reason Entrepreneurs Choose to Incorporate Is Because Of