Respuesta :

Since publicly listed stock is how most firms sell ownership, they can quickly raise money by selling stock. Other company types do not have this luxury of access to finance. Hence, a corporation is the most effective for raising capital.

The advantages of a corporation are many, ranging from-

  1. Limited Liability.
  2. Easily transferrable interests.
  3. The corporation, being a separate entity, continues its life beyond the lifetime of the founders.
  4. Increased credibility in the eyes of the partner.
  5. Lowered tax rates.

The purpose of a company is mainly to provide a vehicle for collaboration in which ownership interests can be easily transferred to others.

To learn more about corporations, refer to:

https://brainly.com/question/28535235

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EDU ACCESS
Universidad de Mexico