Question

The typical business organization for large companies is the corporation. Advantages of the corporate form of business organization​ include: ​ (Select all that​ apply.)

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Part 1
A.The life of the business is not tied to the status of the corporate owners.
B.The corporation is owned by the board of directors who share in the profits and the liabilities of the company.
C.Corporations have a greater ease in raising large sums of money than other forms of business organization.
D.The​ owners' liability is limited to the amount of their investment in the company.

Answer 1

The advantages of corporations include an independent life separate from the owners, the ability to raise capital, and limited liability for its shareholders. Contrary to one option, the board of directors does not own the corporation but is elected by shareholders who own the company's stock.

Step-by-step explanation:

The typical business organization for large companies is the corporation. Advantages of the corporate form of business organization​ include:

The life of the business is not tied to the status of the corporate owners.Corporations have a greater ease in raising large sums of money than other forms of business organization.The​ owners' liability is limited to the amount of their investment in the company.

However, it is important to note that while a corporation's board of directors oversees the management of the company, they do not own the company.

Instead, the corporation is owned by the shareholders, who elect the board of directors.

Shareholders benefit from the profits through dividends and stock value appreciation, but they are not personally liable for the company's debts and liabilities; their risk is limited to their investment in the stock of the corporation.