4 years ago

What are two advantages of the corporate structure?

1 answer:

7 0

Answer:

The owners' assets are protected from the debts and liabilities of the corporation. Shareholders are not held liable for business losses.

Easier to raise capital. It is easier to attract capital with the sale of stocks and bonds. A corporation can have an unlimited number of investors.

Easy to transfer ownership. Shares of stock can be sold.

Corporations have perpetual lifetimes. The entity continues to exist beyond the deaths of the owners.

Certain expenses are tax deductible. Owners can receive tax-free benefits such as deductions for retirement plans and insurance.

Explanation:

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