The most essential advantage of incorporation is the restricted responsibility to which shareholders are subject: they are not liable for the corporation's obligations, and they may lose no more than the amount they personally put in the firm.
A company is the legal entity that exists apart from its owners. Corporations have many of same legal rights and obligations as people. They can make contracts, lend and borrow the money, sue and be sued, hire the people, own the assets, and pay the taxes.
Therefore, the answer is that it restricts responsibilities of the shareholders which does not make them liable for the corporations obligation.
To know more about corporate form of business click here:
https://brainly.com/question/9389546
#SPJ4
