Question

Which of the following is one of the advantages of forming a corporation?

A ) The ability to take personal deductions for business losses

B ) The ability to sell stock to raise funds

C ) The ability to go bankrupt

D )The ability to sell the corporation

What business structure automatically reinvests profits in the corporation?

A ) An S corporation

B ) A nonprofit corporation

C ) A sole proprietorship

D ) A limited partnership

Answer 1

B a non-profit corporation

Answer 2

1) B 2) Nonprofit corporation

Step-by-step explanation:

1) By forming a Corporation your company will have uncountable partners, after making an IPO Initial Public Offer in Stock Market. That's why Corporations, among other reasons, can raise more money than other companies.

So, it's B, The ability to sell stock to raise funds

2) A nonprofit organization must reinvest its eventual profits, in the Corporation. By law, and specific regulations, these companies must solely reinvest in themselves.

So, it's A nonprofit corporation.