Advantages of a company over the unincorporated business
Write down the advantages of a company over the unincorporated business.
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Limited liability for debts of business is the major advantage that the incorporated business has over the unincorporated business. An allocated advantage is that when one of the members of the incorporated business dies, her or his shares can be transferred to some other people else and business continues, whereas the unincorporated entity has the finite life. The indefinite life of the incorporated entity is potential since complementary to the concept of the limited liability for members is ‘the notion which the company is detach “legal person” diverse from the members and directors’ (Brumwell and Mallett, 1994, p. 7).
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