Advantages of the Corporate Structure

Essay specific features

 

Issue:

Business

 

Written by:

Brian D

 

Date added:

February 25, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 937

 

Was viewed:

9406 times

 

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Essay content:

It is owned by shareholders who have limited liability (i.e., they are not personally responsible for the company’s debts). A company is run by directors. Because the company continues to exist even after the death of a shareholder, it offers tremendous estate planning advantages. In addition to liability protection, incorporating offers attractive tax advantages, better financing and the ability to raise cash...
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If a shareholder holds hundred $1.00 shares in a Company, that shareholder's liability for the company's debts is limited to $100.00. Shareholders are only liable for any unpaid shares and any debts that have been personally guaranteed. That's in contrast to the position of a sole trader or partner in a firm who is liable for the debts of that business unlimited...
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