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Which form of business ownership is best suited for raising large amounts of cap
Which form of business ownership is best suited for raising large amounts of capital?
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Which form of business ownership is best suited for raising large amounts of capital?
Sole Proprietorship
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A corporation is best suited for raising large amounts of capital through the sale of stock.
Questions & Step-by-step Solutions
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Q: Which form of business ownership is best suited for raising large amounts of capital?
Solution:
A corporation is best suited for raising large amounts of capital through the sale of stock.
Steps: 5
Show Steps
Step 1: Understand what raising capital means. It refers to the process of obtaining funds to start or grow a business.
Step 2: Learn about different forms of business ownership, such as sole proprietorships, partnerships, and corporations.
Step 3: Recognize that corporations can sell shares of stock to the public to raise money.
Step 4: Realize that selling stock allows corporations to gather large amounts of money from many investors.
Step 5: Compare this to other forms of business ownership, which may have limitations on how much money they can raise.
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