BUISENESS MANAGEMENT
BUSINESS STRUCTURE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
access to additional capital
|
|
|
limited liability for the shareholders in relation to the debts of the business.
|
|
|
The time and money to establish the company form of business structure;
|
|
|
The more complex regulatory requirements imposed on the company.
|
Detailed explanation-1: -Limited liability is important for companies, as it helps them raise money. With limited liability, investors only risk losing the money they have invested in shares. As a result, shareholders are more likely to invest in a company if they know they will not lose their personal assets.
Detailed explanation-2: -Asset Protection The main advantage to an LLC is in the name: limited liability protection. Owners’ personal assets can be protected from business debts and lawsuits against the business when an owner uses an LLC to do business. An LLC can have one owner (known as a “member”) or many members.
Detailed explanation-3: -The corporate form of organization offers several advantages, including limited liability for shareholders, greater access to financial resources, specialized management, and continuity.
Detailed explanation-4: -The big benefit is that it protects the individual partner’s assets and deems the LLP as a legal entity in its own right. The disadvantages are that the partnership needs to publicly disclose its financial details and there are fewer tax advantages compared to setting up an LLC.