INSTRUCTION: BRIEFLY EXPLAIN THE ADVANTAGE AND DISADVANTAGE OF THE FOLLOWING. DO NOT COPY PASTE FROM THE WORK OF OTHERS. THANK YOU

Advantages of a Corporation

1. Capacity to act as legal entity
2. Continuity of Life
3. The liability of the stockholders for the debts of the corporation is limited to their fully paid investment in the corporation.
4. There is better management as the best service service may be extracted from the bigger membership of a corporation.
5. There is more unified form of control which is reposed in the Board of Directors.
6. Transferability of shares even without the consent other stockholders.
7. There is greater source of capital.

Disadvantages of Corporation

1. A corporation is subject to a greater governmental control.
2. Frequent and varied reports are required of corporations.
3. A corporation may not engaged in any other business other than that specified in the Articles of Incorporation.
4. Minority of stockholders may be at the mercy of majority stockholders.
5. A corpoaation cannot transact business in another state unless it obtains a license for that purpose.
6. It involves double taxation.
7. Outstanding stock cannot be more than the capital stock.
8. Credit of corporations is limited to on account of limited liability of stockholders.
9. There is a greater possibility of abuse of power.