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ARServices Web-Log Benefits Of CorporationsReady To Incorporate?ADVANTAGES OF CORPORATIONS1) Limited Liability of owners - the owners of a business are responsible for losses only up to the amount they invest.2) More money for investment - a corporation can sell ownership (Stock) to anyone who is interested.3) Size - corporations do not have to be large to enjoy the benefits of incorporating. Many doctors, lawyers, and individuals, as well as partners in a variety of businesses, have incorporated.4) Perpetual life - corporations are separate from those who own them, the death of one or more owners does not terminate the corporation.5) Ease of ownership change - it is easy to change the owners of a corporation. All that is necessary is to sell the stock to someone else.6) Ease of drawing talented employees - Corporations can attract skilled employees by offering such benefits as stock options (the right to purchase shares of the corporation for a fixed price).7) Separation of ownership from management - Corporations are able to raise money from many different investors without getting them involved in management.Nickels, McHugh, McHugh (2005). Understanding Business. McGraw-Hill Irwin (Eds.), Business Ownership: Starting a Small Business (7th ed., PP. 149-150).
Benefits,Corporations,ARServic