Final answer:
The primary objective of a corporation is to maximize shareholder wealth with advantages such as limited liability, the ability to raise substantial funds, and perpetual existence. These benefits enable corporations to conduct more business compared to sole proprietorships and partnerships.
Step-by-step explanation:
The primary objective of a corporation is to maximize shareholder wealth and provide a return on their investment. Corporations are preferred for conducting business because they provide several advantages, including being considered a legal entity separate from its owners. This status allows corporations to sue and be sued, enter into contracts, and file for bankruptcy. Corporations can also raise significant amounts of revenue by issuing stock or corporate bonds, hiring professionals, enjoying limited liability for shareholders, and potentially having an unlimited lifespan. Additionally, it's easy to transfer ownership through stocks, and corporations often have well-recognized names that can add to their success.
Compared to sole proprietorships and partnerships, corporations have a more considerable ability to raise funds, which is vital for expansion and growth. This is why they often conduct more business than other forms of organizations. Incorporation also protects individual owners from the full extent of financial and legal liability, encouraging investment and allowing for risks that drive industry growth and job creation.