Which of the following statements is correct? a. A hostile takeover is a primary method of transferring ownership interest in a corporation. b. The corporation is a legal entity created by the state and is a direct extension of the legal status of itsowners and managers, that is, the owners and managers are the corporation. c. Unlimited liability and limited life are two key advantages of the corporate form over other forms ofbusiness organization. d. In part, due to limited liability and ease of ownership transfer, corporations have less trouble raisingmoney in financial markets than other organizational forms. e. Although stockholders of the corporation are insulated by limited legal liability, the legal status of thecorporation does not protect the firm's managers in the same way.

Question

Business

Tyson Huffman

16 January, 02:21

Which of the following statements is correct? a. A hostile takeover is a primary method of transferring ownership interest in a corporation. b. The corporation is a legal entity created by the state and is a direct extension of the legal status of itsowners and managers, that is, the owners and managers are the corporation. c. Unlimited liability and limited life are two key advantages of the corporate form over other forms ofbusiness organization. d. In part, due to limited liability and ease of ownership transfer, corporations have less trouble raisingmoney in financial markets than other organizational forms. e. Although stockholders of the corporation are insulated by limited legal liability, the legal status of thecorporation does not protect the firm's managers in the same way.

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Answers (1)

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Arthur Marks · Answer 1

d. In part, due to limited liability and ease of ownership transfer, corporations have less trouble raising money in financial markets than other organizational forms.

Explanation:

In a corporate form of company, the partners hold equity shares, and the number of shares can be unlimited. Accordingly, the liability of each partner is up to the amount of share, and are not held personally liable.

Also since there are huge number of partners the amount of funds are never short and it grows, further because of this the company is even able to raise huge funds, which is not possible for other forms of organization.