Responses to Wk1AJ and AC Analyze the advan and disadv argee or Essay

Responses to Wk1AJ and AC Analyze the advan and disadv argee or disagree and why - Essay pillow slipPublic corporations in the United States are mandated by the Securities Exchange Commission (SEC) to publish fiscal statements at least once a year. Most public companies release interim financial statements every trimester. The branched taxation that occurs in corporations is a disadvantage of the corporate business structure. other con associated with corporations is greater political regulations and interventions. DQ2 I agree with you that one of the advantages of the corporate business structure is that it facilitates the process of raising capital. Corporations crumb perplex public firms and sell its common stocks in the open market. When a company becomes public its stocks are ab initio sold through a process known as an initial public offering (Investorwords). Another mechanism that can be used by public corporations to raise cash is to sell commercial-grade paper in the form of bonds. A bond is a $1000 face value financial instrument that allows a company to obtain loans in $1000 units from different investors. The interest paid by bond is known as the coupon rate. If a company does not pay dividends during a fiscal period the double taxation effect does not take place. Another hybrid instrument that can be used by corporations to raise capital is preferred stocks. Work Cited Page Investorwords.com. 201. IPO. 10 July 2011.