What are the main advantages and disadvantages of organizing a firm as a corpora

Question

What are the main advantages and disadvantages of organizing a firm as a corporation? The advantages are: (Select all the choices that apply.) There is no limit on the number of owners a corporation may have, thus allowing the corporation to raise substantial amounts of capital. The life of the business can continue beyond the death of any of the owners. The corporation can use the assets of the owners to pay for corporate liabilities. This attracts smaller investors to the corporation. The liability of the owners is limited to the amount of their investment in the firm.

Explanation / Answer

Answer: Advantages:
A. There is no limit on the number of owners a corporation may have, thus allowing the corporation to raise substantial amounts of capital.

B. The life of the business can continue beyond the death of any of the owners.

D. The liability of the owners is limited to the amount of their investments in the firm.

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