Illustrate the advantage and disadvantage of Corporations

Question

Illustrate the advantage and disadvantage of Corporations?

Answer 1

Advantages: improved ability to raise financial capital (money); defining and comparing stocks and bonds; limited liabilities; corporations have a permanence that is conducive to long-run planning and growth.

Disadvantages: red tape and expense in obtaining a corporate charter; unscrupulous business owners sometimes avoid responsibility for questionable business activities.