Which of the following could explain why a business might choose to operate as a corporation rather than as a proprietorship or a partnership? Group of answer choices Corporate investors are exposed to unlimited liability. Corporations generally face fewer regulations. Corporate shareholders are exposed to unlimited liability, but this factor is offset by the tax advantages of incorporation. Less of a corporation's income is generally subject to federal taxes. Corporations generally find it easier to raise large amounts of capital.

Question

Jaydon Pace

Business

30 September, 04:15

Which of the following could explain why a business might choose to operate as a corporation rather than as a proprietorship or a partnership? Group of answer choices Corporate investors are exposed to unlimited liability. Corporations generally face fewer regulations. Corporate shareholders are exposed to unlimited liability, but this factor is offset by the tax advantages of incorporation. Less of a corporation's income is generally subject to federal taxes. Corporations generally find it easier to raise large amounts of capital.

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Marlee Christensen · Answer 1

Corporations generally find it easier to raise large amounts of capital.

Explanation:

A corporation is a company or group of companies that is recognised as a separate entity from its owners.

A major advantage not corporations is that they can obtain large amounts of capital from the general public by issuing shares. Shares are bought to obtain an equity or ownership in the company.

Investors are also willing to buy shares with corporations because the organisation bis a seperate entity. They are not liable for actions taken against the company. It is also easy to sell one's shares of a company to get back funds invested.