Restaurants are easy to start up but difficult to keep going.
Limited Liability. A company is an independent legal entity and shareholders are only liable to the extent of their property. This limited liability feature gives corporations an advantage over sole proprietorships and partnerships that do not enjoy such protection. The advantage of partnerships is that there is a simple process for partners to exit the business.
The advantage of a partnership over a sole proprietorship is the potential to raise more capital. A major drawback of the corporate form is the double taxation of shareholders on distributed profits and dividends. Some of the advantages include limited liability easy transferability the ability to raise funds, and unlimited life.
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