Final answer:
A corporation's main strength is limited liability for shareholders, which protects personal assets from business losses. Other advantages include ease of raising capital for expansion and an unlimited lifespan. Disadvantages include more government regulation and potentially higher taxes.
Step-by-step explanation:
The strength of a corporation includes several key advantages over other forms of business organization, one of which is limited liability for its shareholders. This means that shareholder liability for losses or debts of the corporation is limited to their investment, and personal assets are generally protected. Another strength is the ability to raise capital more easily through the sale of stock or issuance of bonds. This makes it simpler for corporations to finance growth and expansion. Additionally, corporations have an unlimited life, meaning they continue to exist even if ownership changes, and they experience seamless transfer of ownership through the buying and selling of stock. Moreover, corporations enjoy name recognition which can be a significant business advantage.
Conversely, corporations do face some disadvantages such as being subject to more government regulation, a potentially higher tax burden compared to other business structures, shareholders having limited control over daily operations, and higher costs associated with organizational setup and maintenance.