Chapter 8, Problem 15AA

To determine

To evaluate a corporation that different from other forms of businesses such partnerships and sole proprietorships.

Explanation of Solution

A company has many capital raising opportunities. They will sell common shares and build new common categories with different voting or profit features, such as preferred stock. Therefore creditors should be confident they know that they are not solely liable for corporate debts.

Collaboration in a company can be sold to third parties with no interfering with the business's continued activity. By contrast, the entirety of a sole ownership or partnership is not eligible to sold .Instead, every part of its property, permits and licenses must be transferred individually. It requires, in turn, new bank accounts and tax identification numbers.

Economics Concept Introduction

Introduction: Corporation is a type of business activity that declares the corporation to be a legal entity separately governed by a member of officers known as the board of directors. Perhaps the most beneficial way to start business in a corporate structure, as the company acts as a different department.