Corporations prefer to raise funds from investors because Investors charge interest Dividends must be paid every quarter Creditors must be repaid They cannot vote on the members of the board of directors The following business form does not have to file an application with a state government to exist LLC Sole Proprietorship S Corporation C Corporation It's better to be an investor than a creditor because growth in the fair market value of the shares of stock held increases the investor's net worth of the guarantee of dividends interest paid is higher investors get paid before creditors if the company fails