Which one of the following business types is best suited to raising large amounts of capital?

  • sole proprietorship
  • limited liability company
  • corporation
  • general partnership

Note

corporation business is best suited to raising large amounts of capital.

Tags: Introduction to Corporate Finance

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Which one of the following characteristics applies to a limited liability company?

Which type of business organization has all the respective rights and privileges of a legal person?

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Which business types is best suited to raising large amounts of capital?

Ability To Raise Capital: Corporations give you the biggest opportunities for raising large amounts of capital through the sale of stock. Limited Personal Liability: Corporations offer the most protection against personal liability for shareholders.

Which one of the following business types is best suited to raising large amounts of capital quizlet?

Corporations can raise large amounts of capital generally easier than partnerships can. Stockholders face no potential losses related to their corporate investment. Corporate shareholders elect the corporate president.

Which form of business can raise capital the fastest?

In most cases, a partnership will be able to raise capital more easily than a sole proprietorship, but not as easily as a corporation. The borrowing power of each partner may be pooled to raise debt capital, or additional partners may be admitted to increase this pooled borrowing power.

What is the best type of business organization?

Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures. Corporations also require more extensive record-keeping, operational processes, and reporting.