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algol13
3 years ago
6

Why do many business owners prefer corporations over other forms of business organization?

Business
1 answer:
lianna [129]3 years ago
5 0
Many business owners prefer corporations over other form of business organization because corporation has several advantages:
1. Corporation is a legal entity that is created by the state.
2. It is for an unlimited life span.
3. Transfer of ownership is easy.
4. Corporate form also increases the credibility of a company.
5. Companies also find it easier to raise money in a corporation.
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The answer is below

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3 years ago
The town of Chester has an economy composed entirely of two equally sized food companies. Both company Q and company R produce p
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Answer:

C) abandon the production of jam to fully specialize in the production of peanut butter and then trade with Company Q for jam.

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In this case, since Company R has a comparative advantage in the production of peanut butter, it should specialize in producing only that. In case they need jam, they should trade with Company Q in order to get some jam. Eventually Company Q  will only produce jam since they have a comparative advantage in jam production.

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