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Which business structure is best suited for raising large amounts of capital?

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Question: Which business structure is best suited for raising large amounts of capital?

Options:

  1. Sole proprietorship
  2. Partnership
  3. Corporation
  4. Cooperative

Correct Answer: Corporation

Solution:

Corporations can issue stocks to raise capital, making them ideal for attracting large investments.

Which business structure is best suited for raising large amounts of capital?

Practice Questions

Q1
Which business structure is best suited for raising large amounts of capital?
  1. Sole proprietorship
  2. Partnership
  3. Corporation
  4. Cooperative

Questions & Step-by-Step Solutions

Which business structure is best suited for raising large amounts of capital?
  • Step 1: Understand what raising capital means. It refers to getting money to fund a business.
  • Step 2: Learn about different business structures, like sole proprietorships, partnerships, and corporations.
  • Step 3: Know that corporations can sell shares of stock to the public.
  • Step 4: Realize that selling stocks allows corporations to raise large amounts of money from many investors.
  • Step 5: Conclude that corporations are the best structure for raising large amounts of capital.
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