Final answer:
A business owner might choose a corporate form of business due to benefits like limited liability, ease of transferability, and potential tax advantages. Corporations can also more easily raise capital, have the advantage of perpetuity, and benefit from name recognition. However, they are subject to regulations and typically have higher tax burdens.
Step-by-step explanation:
A business owner might choose the corporate form of business for various reasons, one of which is limited liability, where the owners are not personally responsible for the debts and liabilities of the business. This form also allows for ease of transferability of ownership through the selling of stocks, and it can provide certain tax advantages such as the deductibility of health insurance premiums for employees.
Another aspect of corporations is that they are separate legal entities, allowing them to enter into contracts, sue and be sued, and possess rights and responsibilities like an individual. They can raise capital more easily through the issuance of stock, have the ability to continue indefinitely (perpetuity), and may benefit from name recognition which can provide an advantage in the marketplace. However, they do face government regulations and typically have higher tax burdens than smaller business entities do.