5
QuizMultiple Choice

Business Structures

Question 5 • RAIL NCAA OC Economics 2027

The main advantage that corporations have is

Answer
l
limiting liability for owners and stockholders.
g
giving many owners a say in business decisions.
b
being inexpensive and easy to establish.
r
requiring fewer state and federal regulations.

Explanation

A corporation is legally separate from its owners, so owners and stockholders generally risk only the money they invested in the business. This protection from personal liability is a major advantage of corporations. Corporations can be more expensive to establish and face more regulations, so C and D are not advantages.

AI-written and checked against the verified answer.

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