|
_ --Corporation:
An 'artifical
person'
created by law. Stockholders own the
business.
Advantages
_______________________________________
- Limits
liability.
- Easy transfer
of ownership.
- Easier to
raise capital.
- Perpetual
life.
|
Disadvantages
____________________________________________
- Difficult/expensive
to form.
- Lack of
secrecy.
- Government
regulation.
|
|
Incorporation has
made
capitalism the dominant
economic system.
Organizing as a
corporation
makes it possible to raise
large amounts of capital
and protect one's personal
assests should the business
have a problem.
Since a corporation
is a
separate organization, and
you are just an employee,
if the corporate veil
holds,
all any creditor can
collect
will__
be corporate owned assets,
not your own personally
owned assets.
__________________________
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