Raw's paper Term Example | Topics and Well Written Essays - 1250 words

Raw's - Term Paper Example Your idea is conventional; furthermore, it is in your best interest that the largest numbers of customers share the benefits. Indeed, corporations are widely revered for their success in the business world. The first major advantage of this model is limited liability of the stakeholders of the business (McQuaig & Billie 751). In case the business is declared, bankrupt or is engaged in a very expensive lawsuit the stakeholders are only entitled to pay amounts equivalent to their holding in the company. This assures the stakeholders that the debt will not exceed their personal property as experienced in sole proprietorships and partnerships. If the credits owed are not payable, there will be liquidation of the assets. This limits any personal obligation of the company’s stakeholders on the debt of the entity. This can guarantee the stakeholders a soft landing despite the unfavorable conditions since their personal property is intact. Secondly, a corporation is a distinct legal person illustrating that it has its jurisdiction. This means that the firm will possess its own property, engage in contracts, acquire, and terminate its possessions. This is beneficial, as the property of the firm will not be attached to individuals. However, the company will utilize this independently to satisfy the objectives of the firm. In legal proceedings, it is the company that is indicated and not the owners or employees of the firm (McQuaig & Billie 751). The business can pursue its operations when the executives are relieved of their positions. In sole proprietorship, the business is not separate from the owner; therefore, the proprietor determines the dissemination of resources in the organization. A contract is not detachable from a sole proprietor since his signature certifies the deal and he is obligated to fulfill the requirements. Since he is not eligible for the same exception as a corporation,