Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

It is usually casier for a Corporation to obtain debt financing compared to businesses organized in alternative legal forms because: a C corporation can issue

It is usually casier for a Corporation to obtain debt financing compared to businesses organized in alternative legal forms because:\ a C corporation can issue stock\ a C comporation has a board of advisars who act as fiduciaries for the corporation's lenders\ due to securities regulations, tax concerns, and their own legal form of business organkation, many investors can or will invest enly in C corporations.\ lenders get to choose to whom they want to makn a loan and, as a result, business credit is often reserved for larger, more sophisticated businesses that have a formal legal structure in place, like a corporation

image text in transcribed
It is usually casier for a C corporation to obtain debt financing compared to businesses organized in alternative legal forms because: a c corporation can issue stock a C corporation has a board of adisars who act as fiduciaries for the corporation's lenders due to securities regulations, tax concerns, and their own legal form of business organization, many investors can or will invest cnly in C carporatians. lenders get to choose to whom they want to make a loan and, as a result, business credit is often reserved for larger, more sophisticated businesses that have a formal Iegal structure in place, like a corporation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting Volume 2

Authors: Frank Wood, Alan Sangster

10th Edition

0273693107, 978-0273693109

More Books

Students also viewed these Accounting questions

Question

ACC ear a. 1.00% b. 15.00% b. 15.00% c. 12.47% d. 22.73% d. 22.73%

Answered: 1 week ago

Question

Describe the planned-change model

Answered: 1 week ago