Chapter 8.3, Problem 2R

To determine

To evaluate the advantages and disadvantage of incorporating a business in a diagram.

Explanation of Solution

Advantages of incorporation	Disadvantages of incorporation
i. The incorporated firm has the capacity to sue anyone or to be sued by someone else under its own name. ii. An incorporated firm is considered to hold property in his / her name but they are not the owner of property. iii. Company ensure Perpetual Succession which means that even though the founders cease to exist, a corporation will never die.	i. Double Taxation  ii. Personnel loss "Ownership; if a company is a stock corporation, one person does not maintain full entity control. iii. When forming a company, that are expected to obey all the rules specified by the state to filed in. That includes corporate management, organizational requirements, and accounting practices for the company.

Economics Concept Introduction

Introduction: Incorporation is the legally process involved to establish a firm or organization. A corporation is the legal agreement which separates the assets and revenue of the company from the owners and creditors . This is the method of declaring a corporate body as being independent from its shareholders.