A local retail shop has been operating as a sole proprietorship.The business is growing and now the owner wants to incorporate.Which of the following is not a reason for this owner to incorporate?
A)Ability to raise capital for expansion
B)Desire to limit the owner's personal liability
C)The prestige of operating as a corporation
D)The ease in transferring shares of the corporation's stock

Question

Quizplus · Accepted Answer

Incorporating for prestige is not a practical or financial reason. The other options provide tangible benefits like raising capital, limiting liability, and ease of transferring ownership.

A Local Retail Shop Has Been Operating as a Sole