Question

The most important reason for the increasing prominence of the corporation was:________.
a. protection from creditors.
b. that some businesses required more capital than one person or a few people could provide.
c. the use of "double liability."
d. None of the above

Answer 1

Answer:

That some businesses required more capital than one person or a few people could provide.(B)

Explanation:

Corporations : they are large companies that operate as a separate legal entity different from their owners. Running a corporation required an high risk as well as huge capital outlay  to establish which is difficult for an individual or a few  to provide.

These entities are mostly listed and owned by stockholders. Sometimes a group of banks jointly  provide them with loans to finance their project.