What advantage do corporations have over partnerships?

Responses

They pay fewer taxes.
They pay fewer taxes.

They involve less paperwork.
They involve less paperwork.

They can protect their investors from business debts.
They can protect their investors from business debts.

The owners don't have to work together.

1 answer

The main advantage that corporations have over partnerships is that they can protect their investors from business debts. In a corporation, shareholders' liability is typically limited to their investment in the company, meaning they are not personally responsible for the company's debts or legal obligations. This contrasts with partnerships, where partners can be personally liable for the debts of the business.

So, the correct advantage from your options is:

They can protect their investors from business debts.