Question

Corporations
What are the primary advantages of forming a corporation? Select all that apply.

Corporations are inexpensive and easy to set up.
Corporations are not required to register with state governments and the federal government.
It is easier to raise large amounts of capital.
Owners are not personally liable for corporations’ debts.
Corporations do not have to pay business taxes.

Answer 1

Select:
- It is easier to raise large amounts of capital.
- Owners are not personally liable for corporations’ debts.

Brief why: Corporations can issue stock and attract investors, making large capital raises easier, and shareholders have limited liability (they're generally not personally responsible for corporate debts). The other statements are incorrect—forming a corporation usually costs more and requires state registration, and corporations (C corps) generally pay business taxes.