Final answer:
The corporate form of business offers several advantages, such as limited liability for shareholders, ease of raising capital through stocks and bonds, and the ability to have an unlimited lifespan. These benefits contributed greatly to America's industrial expansion by enabling resource pooling and talent gathering, though they do come with increased taxation and legal costs.
Step-by-step explanation:
Advantages of Corporations
The advantages of the corporate form of business include key attributes that facilitate its operation and growth. One significant advantage is limited liability for stockholders, meaning shareholders are protected from the company's debts and liabilities to the extent of their investment. This encourages investment as shareholders know they can lose no more than the amount they've invested.
Another advantage is the ease with which corporations can raise capital. They can do this either through selling stock, which is partial ownership in the company, or through issuing bonds, which are essentially loans that will be paid back with interest. Furthermore, the corporation as a legal entity has the ability to enter into contracts, sue and be sued, and can have an unlimited life—continuing to exist even if ownership changes—thereby providing stability.
The benefits of incorporation were instrumental in expanding America's industrial growth, as they allowed the pooling of resources and talents necessary for large-scale enterprises. However, it is not without downsides, such as potentially significant taxation and the legal and administrative costs associated with setting up and maintaining corporate structure.