Ch 11 BDC - short, your personal assets would be safe....

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Business Decision and Communication Problem To Mr. Rob, In regards to your questions regarding the differences between a proprietorship and a corporation I have responded with this memo detailing the advantages with incorporating. With a corporation, the business will be a separate “person” so to speak. The corporation will be able to enter into contracts, sue, be sued, etc. If the company falls into trouble, the only losses you can incur would be the assets you personally put into the company. In
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Unformatted text preview: short, your personal assets would be safe. Common stock holders are the base owners and investors in the company. Preferred stock owners get the first right to dividends distributed by the company, but they are unable to vote at stockholders meetings. Common stock owners always get a vote at these meetings, with the right of one vote per share owned....
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