Which of the following factors enable a public corporation to grow to a greater extent,and perhaps at a faster rate,than a partnership or proprietorship?
A)Access to the capital markets
B)Unlimited liability of the shareholders
C)Limited life
D)Elimination of double taxation corporate income

Question

Quizplus · Accepted Answer

Public corporations can raise large amounts of capital through the sale of stocks and bonds in the capital markets, which is not possible for partnerships or proprietorships. This allows them to grow more quickly and to a greater extent.

Answer: B and C
 This is incorrect as unlimited liability of shareholders and limited life of the corporation are disadvantages of a public corporation, not factors that enable it to grow to a greater extent.

Answer: D
 Elimination of double taxation of corporate income is a benefit of being a public corporation, but it alone does not necessarily enable a public corporation to grow to a greater extent.

Which of the Following Factors Enable a Public Corporation to Grow