Question

Corporations became a popular way to set up businesses because they:
A.raise capital
B.limit the risk for individual inventors
C.allow investors to share in the profits
D.all of the choices are correct

Answer 1

Answer:

D.all of the choices are correct

Explanation:

A corporation is a business venture which comprises of shareholders with a very low amount of risk. They risk only their equity in this type of business and they aren’t responsible for any loss accrued by the company. They also raise money( capital) through the sale of the shares of the company.

A corporation helps to raise capital, limit the risk for individual inventors and allows investors to share in the profits of the corporation.