Final answer:
The question discusses the benefits of partnerships, such as ease of start and management, no special taxes, and possible tax advantages, against the benefits of corporations, such as limited shareholder liability and easier capital raising. It also touches on the advantages of bank accounts with high liquidity and safety due to FDIC protection.
Step-by-step explanation:
The student's question pertains to the benefits of different business structures, namely partnerships and corporations. For partnerships, advantages include being easy to start up with just a partnership agreement, managing them can be straightforward, and there are often no special taxes as each partner pays taxes on their share of the income. Partnerships can attract financial capital relatively easily and may be slightly larger in size compared to a sole proprietorship, allowing for potentially more employees and efficiencies.
Corporations, on the other hand, offer benefits such as limited shareholder liability which is confined to the amount invested, easier avenues to raise funds for expansion, and the option to finance growth through the sale of stock. Also, the structure presents a possibility for shared tax advantages and presents a reduced risk of obsolescence. The balance sheet of a corporation can be leaner with fewer liabilities and assets listed due to potential financing methods that don't require large capital expenditures.
In addition, the mention of the benefits related to bank accounts, with high liquidity and safety provided by institutions like the FDIC, is also worth noting as it provides context on the security and accessibility of financial capital for businesses.