why is ownership of a corporation the easiest to transfer?
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Continuity and Transferability
- Because the corporation has a legal life separate from the lives of its owners, it can (at least in theory) exist forever.
- Transferring ownership of a corporation is easy: shareholders simply sell their stock to others.
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Explanation:
The easy transfer of ownership and the limited liability of stockholders are attractive features to potential investors. Thus, it is relatively easy for a corporation to raise capital by issuing shares of stock to many investors.
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