Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?
answer
corporations generally find it relatively difficult to raise large amounts of capital.
less of a corporation's income is generally subjected to taxes than would be true if the firm were a partnership.
corporate shareholders escape liability for the firm's debts, but this factor may be offset by the tax disadvantages of the corporate form of organization.
corporate investors are exposed to unlimited liability.
corporations generally face relatively few regulations.

Read the following scenario and answer the question in 5-10 sentences. you are the owner of a small business that is a defendant in a lawsuit in federal court. you received bad news from your lawyer that the judge did not allow certain documents to be admitted as evidence in court and that the jury reached a $50,000 verdict in favor of the plaintiff. your lawyer tells you that it is within your legal right to hire him to file an appeal with the united states court of appeals. if the appellate court rules in your favor, you may be able to avoid paying part or all of the $50,000. evaluate your lawyer’s suggestion about appealing the decision.