The advantages of corporate enterprises are:
1, infinite existence, a company can still exist after the original owner and operator quit;
2, limited liability, corporate debt is a legal person's debt, not the owner's debt. The owner's debt liability is limited to his capital contribution;
3. Strong mobility of ownership;
4. The superior position of the capital market.
Second, analysis
A company-based enterprise is an economic organization with the legal person property system as the core and the scientific and standardized corporate governance structure as the basis, which is engaged in large-scale production and operation activities, has the legal person qualification and is established according to law. The company system has two main characteristics.
3. What are the shortcomings of corporate enterprises?
1, double taxation. As an independent legal person, the company needs to pay enterprise income tax on its profits. After the profits are distributed to shareholders, shareholders also need to pay personal income tax;
2. The cost of establishing a company is high, and the requirements for establishing a company are higher than those for establishing a sole proprietorship or partnership, and various reports need to be submitted;
3. There is an agency problem. After the separation of the operator and the owner, the operator is called the agent and the owner is called the principal. An agent may harm the interests of the principal for his own benefit.