Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 1 - Introduction to Financial Statements - Self-Test Questions - Page 26: 2

Answer

(c) Reduced legal liability for investors.

Work Step by Step

One of the main advantages of the corporate form of business compared to partnerships and sole proprietorships is that shareholders (owners) have limited liability — they are only liable for the amount they invested in the corporation.
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