The ability of a corporation to obtain capital is

a. restricted because of the limited life of the corporation.

b. enhanced because of limited liability and ease of share transferability.

c. less than the ability of a partnership.

d. about the same as the ability of a partnership.

The ability of a corporation to obtain capital is enhanced because of limited liability and ease of share transferability.

Option B

Explanation:

A business needs a lot of money to operate. Capital can be of various forms, from people and labour to economic capital. But the first thought that comes to mind when many of us hear the word financial capital is actually money. While various things can say, it's not necessarily untrue. Financial assets, shares and yes cash reflect financial capital.

Companies can use bond or equity funding to raise money - where interest rates usually fall short of the equity cost of the loan.

Debt holders generally charge corporations interest, while shareholders depend on asset growth or refund dividends.

Preferred shares hold a higher claim on the value of a corporation than common stock, which reduces the cost of borrowing on preferred shares.