Which of the following is an advantage corporations enjoy over sole

proprietorships?

O A. Corporations have an easier time raising money to start or expand

a business.

O B. The investors in a corporation get to make all of the business

decisions themselves.

O C. The taxes paid by a corporation are generally much smaller.

D. Sole proprietors have to abide by the decisions of a board of

directors.

Answer: The answer is A corporation have an easier time raising money to start or expand a business.

Explanation:

A corporation is a business organization in which the liability of the owners is limited to their capital contribution in form of shares to the business. The advantage the corporation has over the sole proprietorship is that they can make use of the stock exchange to raise more money for business through the issuing of shares to subscribers on the floor of the stock exchange. The capital of a corporation is divided into shares such as ordinary shares or common shares, preference shares, cummulative preference shares, participating preference shares and deferred shares.

A corporation can also raise funds by issuing a debenture which is a loan to the company. The loan are usually secured against the property owned by the company so that if the company goes bankrupt debenture holders are sure of getting their money back and if they do not receive their annual interest on their loan to the company they can force the company into liquidation.