Which of the following is an advantage of forming a corporation?

Forming a corporation offers several advantages, one of the most notable being easier transfer of ownership. In a corporation, ownership is divided into shares of stock, which can be easily bought, sold, or transferred without affecting the operations of the business. This facilitates raising capital; potential investors can purchase shares, making it simpler to attract investment. This fluidity contrasts with other business structures, such as partnerships or sole proprietorships, where transferring ownership can be much more complicated and may require the consent of other owners or involve extensive legal processes.

In addition to this advantage, corporations also benefit from limited liability, meaning shareholders are not personally responsible for the debts of the corporation. This contrasts with options that suggest increased personal liability or regulatory challenges, emphasizing the need for understanding the implications of different business structures when considering ownership transfer and investor relations.