BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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sole proprietorship.
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limited liability company
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corporation
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general partnership.
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Detailed explanation-1: -A corporation is owned by shareholders who have limited liability, and it is best suited to raising large amounts of capital. The owners of the corporation provide capital for the business in exchange for shares.
Detailed explanation-2: -Corporations can raise large amounts of capital generally easier than partnerships can. Stockholders face no potential losses related to their corporate investment. Corporate shareholders elect the corporate president. Corporations can raise large amounts of capital generally easier than partnerships can.
Detailed explanation-3: -Companies can raise capital through either debt or equity financing. Debt financing requires borrowing money from a bank or other lender or issuing corporate bonds. The full amount of the loan has to be paid back, plus interest, which is the cost of borrowing.
Detailed explanation-4: -Corporations have an advantage when it comes to raising capital because they can raise funds through the sale of stock, which can also be a benefit in attracting employees.
Detailed explanation-5: -Corporations can raise funds more easily than sole proprietorships and partnerships. To raise investment capital a corporation only needs to sell its shares of stock. Corporations can further be divided into two: C Corporation or S Corporation.