Question

In: Accounting

What are the three basic forms of business organizations for profit-oriented enterprises?

What are the three basic forms of business organizations for profit-oriented enterprises?

Solutions

Expert Solution

One of the advantages Maria Gonzalez would enjoy is that ownership of a corporation is repre¬sented by transferable shares of stock. This would allow Maria to raise money easily by selling a part of her ownership in the company. Another advantage is that because holders of the shares (stockholders) enjoy limited liability, they are not personally liable for the debts of the corporate entity. Also, because ownership can be transferred without dissolving the corporation, the corporation enjoys an unlimited life.

 


Maria Gonzalez benefits from transferable stock ownership for easy capital raising, limited liability, and corporate longevity.

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