Which of the following could explain why a business might ch

Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?

Select one:

a. Corporations generally find it easier to raise capital.

b. Corporate investors are exposed to unlimited liability.

c. Less of a corporation\'s income is generally subject to taxes.

d. Corporations generally face fewer regulations.

Solution

Correct option is > a. Corporations generally find it easier to raise capital.

Corporation do have more transparency than sole proprietary business and partnership firms hence, they can easily raise the funds