Question

xplain at least two (2) reasons why a business owner might opt to become a ... Justify why you would recommend a Corporation over a Partnership

Answer 1

A business owner might opt to become a corporation over a partnership.

Following are the reasons for such recommendation:

1. Not liable for corporate debts: Under corporation owners are in the form of shareholders and they are not liable for the corporate debts of the business. however, in case of partnership partners are laible for business debts as per the agreement betwween partners.

2. Corporations can easily fund money. : Its easy for the corporations to raise funds from market in the form of issuance of shares. However, in partnership partners generally bring their own money to run the business.