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29 December, 04:20

Why did it make sense for the owners of the Speisekammer restaurant business to be a regular corporation (a C-corporation) when they first opened for business?

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  1. 29 December, 05:05
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    Answer:They wanted to go public eventually

    Explanation: A Regular corporation is a term used to describe small business that incorporates, they are usually classed as C-corporations. A corporation as a business entity has members of the public as part owners and they are liable to share both the profits and the loss of such Company.

    A corporation is regarded in the law as an individual who is capable of being sued and it also has that capacity to sue any offending party.
  2. 29 December, 07:33
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    They wanted to go public eventually.

    Explanation:

    A C corporation is one that is a seperate entity from its owners. The owners are not liable for damages brought against the company. The company is also taxed seperately from the owners.

    For example if the the corporation gets a bad court ruling and all its assets has to pay for the judgement sum, owners will not be liable for any extra on the judgement sum in cases where company assetbis insufficient to settle.

    This is similar to what is obtainable with publicly traded companies, and the owners of the Speisekammer restaurant business are most likely considering taking the company public. That is why they chose the C corporation structure.
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