The Advantages And Disadvantages Of Incorporating A Business

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they may suffer is limited to
the amount invested. Also, the creditors of the corporation can not go beyond
the assets of the corporation to satisfy their claims.
The stockholders or the shareholders are the ones who have control over
the management of a corporation's operation and activities. They are the ones
who elect the board of directors, and the board of directors are responsible to
the stockholders. Also, the board of directors are responsible for the
management of the day-to-day operation of the corporation. They also decide
when and how much of their income to give to the stockholders or shareholders.
Another characteristic that can be an advantage of incorporating a
business is that corporations may be organized for nonprofit organizations such
as colleges, hospitals, and others humanitarian purposes. However, most of the
corporations are organized to earn a profit for stockholders.
The biggest disadvantage of a corporation is that corporations are
subject to ...

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