The ability of a corporation to obtain capital is

A) less than the ability of a partnership
B) about the same as the ability of a partnership
C) restricted because of the limited life of the corporation
D) enhanced because of limited liability and ease of share transferability

Question

Dawney wilson · Accepted Answer

Final Answer : D, Explanation :  Corporations have an advantage in obtaining capital because of limited liability and ease of share transferability. Investors know that they are not personally responsible for the debts and liabilities of the corporation, which makes investing in the corporation less risky. Additionally, shares of stock can easily be bought and sold on the stock market, making it easier for corporations to raise capital than it is for partnerships.

The ability of a corporation to obtain capital is

A) less than the ability of a partnership
B) about the same as the ability of a partnership
C) restricted because of the limited life of the corporation
D) enhanced because of limited liability and ease of share transferability

Definitions

Learning Objectives

Learning Objectives

Related questions

The ability of a corporation to obtain capital isA) less than the ability of a partnershipB) about the same as the ability of a partnershipC) restricted because of the limited life of the corporationD) enhanced because of limited liability and ease of share transferability

Definitions

Learning Objectives

Learning Objectives

Related questions

The ability of a corporation to obtain capital is

A) less than the ability of a partnership
B) about the same as the ability of a partnership
C) restricted because of the limited life of the corporation
D) enhanced because of limited liability and ease of share transferability