Which of the following is an advantage of the corporate form of​ business?

Step 1: Define the Problem

Identify the key components of the question that need to be addressed: The question asks for an advantage of the corporate form of business.

Step 2: Break Down the Problem

Divide the problem into smaller, manageable parts:

• Understand the characteristics of a corporate form of business.
• Identify the advantages associated with these characteristics.

Step 3: Apply Relevant Concepts

Use appropriate academic theories or formulas to solve each part of the problem:

• Corporations are separate legal entities from their owners.
• They have limited liability, meaning shareholders are not personally liable for corporate debts.
• Corporations can raise capital more easily through the sale of stock.
• They have perpetual existence, continuing to exist even if ownership changes.

Step 4: Analysis, Verify and Summarize

Analyze each part in detail if necessary, carry out the calculations by steps. Verify the calculations result and summarize the findings:

• The key advantage often highlighted is limited liability, which protects shareholders' personal assets.
• Another significant advantage is the ability to raise capital through stock sales, facilitating growth and expansion.

Final Answer

An advantage of the corporate form of business is limited liability, which protects shareholders from being personally liable for the company's debts.