Final answer:
The advantages of forming a corporation include liability protection and access to capital, while the disadvantages include higher taxes and limited control. Examples of corporations include Apple Inc. and The Coca-Cola Company.
Step-by-step explanation:
The advantages of forming a corporation include:
- Liability protection: One of the main benefits of forming a corporation is that it provides limited liability protection to the owners. This means that the owners are not personally responsible for the debts and liabilities of the corporation. Their personal assets are protected.
- Access to capital: Corporations have the ability to raise capital by selling shares of stock. This allows them to attract investors and raise funds for expansion or other business needs.
The disadvantages of forming a corporation include:
- Higher taxes and regulations: Corporations are subject to more regulations and higher tax rates than other business structures. They often have additional reporting requirements and may have to pay corporate income taxes.
- Limited control: In a corporation, decisions are often made by a board of directors and shareholders have little say in the day-to-day operations of the business.
Examples of corporations include:
- Apple Inc.: Apple is a multinational technology company that designs, manufactures, and sells consumer electronics, software, and online services.
- The Coca-Cola Company: Coca-Cola is a beverage corporation that produces and sells a wide range of non-alcoholic beverages.