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 a proprietorship?
A)Unlimited liability of shareholders
B)Access to the capital markets
C)Limited life
D)Elimination of double taxation on corporate income
E)All of the above

Question

Quizplus · Accepted Answer

Access to the capital markets allows public corporations to raise capital by issuing stocks and bonds, which is not available to partnerships or proprietorships. This allows them to grow at a faster rate and to a greater extent. Unlimited liability of shareholders, limited life, and elimination of double taxation on corporate income are not factors that necessarily enable public corporations to grow more than partnerships or proprietorships.

Which of the Following Factors Enable a Public Corporation to Grow