Characteristics and Advantages of Corporate form

Question 1

What are advantages of corporate form of business

Answer 1

1) continuous life and not terminated by death
2) Interest are easily transferable
3) Managers and shareholders have limited liability

Question 2

A corporation is a separate legal entity that

Answer 2

makes contracts in it’s own name with shareholders and third parties

Question 3

What are characteristics of a corporation

Answer 3

1) Managers don’t need to be shareholders

2) Can sue or be sued in it’s own name