Setting up a business as a corporation has the following benefits a) Separation of ownership and management b) Easier to raise capital c) Limited liability d) Easier to expand business e) All of the above
Setting up a business as a corporation has the following benefits
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Setting up corporation has the following benefits:
1. Separation of ownership and management: Owners and management are different in corporation. Owners only invest money and are not required to take part in day to day affair. They appoint persons who carry requisite expertise.
2. Easier to raise capital : It is easy for corporations to raise capital via primary markets i.e by way of issuing shares to general public
3. Limited liability : In case of corporation, personal assets of owners will not liquidated to dispose off the obligations. They would be liable only upto the amount contributed.
4. Easier to expand business: Due to ease in raising the capital, it is easier for corporations to expand business
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