Question

Ronald Dickson and Louis Banks have come up with a new idea to leverage social media for improving business productivity. The​ would-be founders are debating the form of ownership that their company should take. Ronald is in favor of​ partnership, while Louis favors the corporate form of business. Which of the​ following, if​ true, would strengthen the argument in favor of setting it up as a​ corporation?

A.Their business would need to raise large amounts of capital.
B.In order to make the idea work, they would need complete control over operations.Your answer is correct.
C.A private equity investor has agreed in principle to provide the seed capital they need.
D.They do not expect to make any profits during the first year of operation
E.They want to limit their liability to the amount of their investment.Ronald Dickson and Louis Banks have come up with a new idea to leverage social media for improving business productivity. The would-be founders are debating the form of ownership that their company should take. Ronald is in favor of partnership, while Louis favors the corporate form of business.

Answer 1

A.Their business would need to raise large amounts of capital.

E.They want to limit their liability to the amount of their investment

Step-by-step explanation:

A.Their business would need to raise large amounts of capital.

Corporations need a lot of funding , administrative, complex and legal , tax requirements.

E.They want to limit their liability to the amount of their investment.

In corporations the individuals are not held liable for company's debt and legal operations.