The ability of a corporation to obtain capital is
A)enhanced because of limited liability and ease of share transferability.
B)less than a partnership.
C)restricted because of the limited life of the corporation.
D)about the same as a proprietorship.

Question

Quizplus · Accepted Answer

The ability of a corporation to obtain capital is enhanced due to limited liability, which protects shareholders' personal assets from the corporation's debts, and the ease of share transferability, which allows for a broader base of investors and easier access to capital markets.

The Ability of a Corporation to Obtain Capital Is