Question

Which of the following could explain why a business might choose to operate as a corporation rather than as a proprietorship or a partnership?

a. Corporations generally find it easier to raise large amounts of capital.
b. Corporate shareholders are exposed to unlimited liability, but this factor is offset by the tax advantages of incorporation.
c. Corporations generally face fewer regulations.
d. Less of a corporation's income is generally subject to federal taxes.
e. Corporate investor.

Answer 1

a. Corporations generally find it easier to raise large amounts of capital.

Step-by-step explanation:

Because of limited liabiliy it is easier to raise capital.