Question

Which of the following is an advantage of a corporation?

a. It is easy to form a corporation.
b. It requires little expense to form a corporation.
c. It offers limited liability for its shareholders.
d. It is a flow-through tax entity.

Answer 1

A corporation offers limited liability for its shareholders.

Step-by-step explanation:

An advantage of a corporation is that it offers limited liability for its shareholders. This means that the shareholders are not personally responsible for the debts and liabilities of the corporation. For example, if the corporation goes bankrupt or faces legal action, the shareholders are protected from having to use their personal assets to satisfy the company's obligations.