In contrast to sole proprietorships and partnerships the obligations of corporations are separate and distinct from the personal obligations of their principals.
So far during this chapter, we've explored sole proprietorships and partnerships, two common and comparatively painless ways for persons to conduct business operations. Both these styles of business include significant disadvantages, however, especially within the area of liability.
The concept that private assets are also placed in danger by business debts and obligations is rightfully scary to the majority. Businesses therefore need a type of business that has indebtedness to owners and is additionally flexible and simple to manage.
That's where the fashionable corporation comes in. As a young man, he was a university dropout without much ability for computer engineering. If doing business as a sole proprietor was his only option, Apple wouldn't exist today. However, Jobs met a talented computer engineer named Steve Wozniak, and also the two decided to pool their talents to create Apple Computer in1976.
A year later, the corporation was incorporated and in 1980 went public in an initial public offering (IPO). Incorporation allowed Jobs far more flexibility in winding up business operations than a mere sole proprietorship could. It allowed him to usher in other individuals with distinct skills and capabilities, raise money within the early stage of operations by promising shares within the new company, and eventually become very wealthy by selling stock, or securities, within the company.
Unlike a sole proprietorship or general partnership, a company may be a separate legal entity, separate and distinct from its owners. It may be created for a limited duration, or it can have perpetual existence. Since it's a separate legal entity, a company has continuity no matter its owners
learn more about corporations: brainly.com/question/25787830
#SPJ4
