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Money, Banking and Financial Markets6th EditionKermit Schoenholtz, Stephen Cecchetti 110 solutions In a primary market transaction, the corporation is the seller, and the transaction raises money for the corporation. Corporations engage in two types of primary market transactions: public offerings and private placements. A public offering, as the name suggests, involves selling securities to the general public, whereas a private placement is a negotiated sale involving a specific buyer. Page 15 To learn more about the SEC, visit www.sec.gov. By law, public offerings of debt and equity must be registered with the Securities and Exchange Commission (SEC). Registration requires the firm to disclose a great deal of information before selling any securities. The accounting, legal, and selling costs of public offerings can be considerable. Partly to avoid the various regulatory requirements and the expense of public offerings, debt and equity are often sold privately to large financial institutions such as life insurance companies or mutual funds. Such private placements do not have to be registered with the SEC and do not require the involvement of underwriters (investment banks that specialize in selling securities to the public). Students also viewedWhich one of the following is an advantage of the corporate form of entity?Answer and Explanation: An advantage of the corporate form of business organization is c. limited liability. A corporation is a separate legal entity and shareholders are only liable to the extent of their ownership.
What are three advantages of the corporate entity form?Pros and Cons of Forming a Corporation. The most common types of corporations are C-corps (double taxed) and S-corps (not double taxed).. Advantages of a corporation include personal liability protection, business security and continuity, and easier access to capital.. What are the advantages of the corporate form of organization quizlet?One advantage of the corporate form of organization is that it avoids double taxation. Organizing as a corporation makes it easier for the firm to raise capital. An advantage of the corporate form of organization is that corporations are generally less highly regulated than proprietorships and partnerships.
Which of the following statements is correct One of the advantages of the corporate form?Answer and Explanation: The correct option is A: One advantage of the corporate form of organization is that the liability of the owners of the firm is limited to their investment in the firm.
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