Which of the following is an attractive benefit of a corporation? Corporations can attract employees by offering stock options. Corporations can enjoy double taxation. Corporations can protect their owners with unlimited liability. Unlike limited partnerships, all owners of corporations are passive investors.

Question

Abby Huber

Business

13 April, 02:56

Which of the following is an attractive benefit of a corporation? Corporations can attract employees by offering stock options. Corporations can enjoy double taxation. Corporations can protect their owners with unlimited liability. Unlike limited partnerships, all owners of corporations are passive investors.

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Answers (1)

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Jaxson Hodge · Answer 1

Corporations can attract employees by offering stock options.

Explanation:

Corporation is a form of business entity, owned by shareholders and controlled by group of elected board of directors. It is a legal entity because owners are separated from the corporation.

In a corporation, skilled employees are attracted by the stock options it offers. Stock option is the right given to an employee to purchase shares of the corporation at a given price.

Other benefit of the corporation is that the liabilities of the owners are limited to their capital or investment in the organization. Should the company be liquidated, owners will only suffer their capital investment due to the principle of separate legal entity.