EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 8220103164535
Author: DeMarzo
Publisher: PEARSON
Question
Book Icon
Chapter 1.1, Problem 2CC
Summary Introduction

To determine: The pros and cons of organizing a business as a corporation.

Introduction:

A corporation is an organization or a business framed by a gathering of individuals, and it has rights and liabilities isolated from those of the people included. It might be a philanthropic or a non-profit association occupied with activities for the public, private, municipal and city or town, which has been sorted out to make a benefit.

A limited liability ensures that a proprietor cannot lose more cash than the resources invested. At the end of the day, it alludes to the measure of risk a financial specialist takes when he invests resources into an organization. Contingent upon the way an organization is sorted out, the proprietors can really lose more than their investment if the organization is bankrupted.

Blurred answer
Students have asked these similar questions
What are the key characteristics of a corporation? What are some of the advantages and disadvantages of this form of business organization?
What areadvantges and disadvantages of the corporate form of business organazations?
What are some reasons why the value of a business other than a small one is generallymaximized when it is organized as a corporation?
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:9780357110362
Author:Murphy
Publisher:CENGAGE L
Text book image
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage
Text book image
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Text book image
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage
Text book image
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Text book image
SWFT Individual Income Taxes
Accounting
ISBN:9780357391365
Author:YOUNG
Publisher:Cengage