Which business form is best suited to raising large amounts of capital? Multiple Choice A) Sole proprietorship B) Limited liability company C) Corporation General partnership D) Limited partnership

Question

Business

Adrien Pruitt

2 October, 06:29

Which business form is best suited to raising large amounts of capital? Multiple Choice A) Sole proprietorship B) Limited liability company C) Corporation General partnership D) Limited partnership

+2

Answers (1)

Know the Answer?

Bobby Owens · Answer 1

Corporation

Explanation:

Corporations can raise capital much easily compared to other forms of business ownership. The shares of a corporation are traded in the stock markets. Should the organization require more capital, it can issue more shares to the public. The corporation offers the public a chance to own the organization in exchange for equity.

In the stock markets, there are no restrictions as to who can buy shares. Investors evaluate the business performance of a company to decide if it's worth buying its stocks. Corporations with a good track record in performance will have no problems in raising additional capital as their shares will be in high demand.