BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Limited liability – Company owners are only liable for the amount they invested. Creditors and lenders have no claim to the owners’ personal assets for payments owed by the shareholders.

Detailed explanation-2: -What are the advantages of forming a corporation? There are several advantages to becoming a corporation, including the limited personal liability, easy transfer of ownership, business continuity, better access to capital and (depending on the corporation structure) occasional tax benefits.

Detailed explanation-3: -Simply, the corporation has the advantage of limited liability, capabilities to raise capital, unlimited life, ownership transfers, etc. Thus, option C is correct. Option A-This option is not correct as double taxation is not an advantage, but a disadvantage.

Detailed explanation-4: -Forming a corporation allows you to: Secure your assets. One of the main advantages* that corporations have is that the owners enjoy limited liability protection and are typically not personally responsible for business debts. This means that creditors can’t pursue your home or car to pay business debts.

Detailed explanation-5: -Limited liability means that if the company faces problems or debts, the shareholders do not risk losing their personal assets. Shareholders will not lose an amount that exceeds their initial investment. Shareholders can receive a part of the company’s profits in the form of dividends.