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FinanceQ&A LibraryBrianna and Britney are two sisters opening a clothing store with no other competition within the area. Both Brianna and Britney believe they will gain great profits in the first year, providing them with the ability to sell franchises in the future. They can start the business as a partnership, however it is believed that cash flow will be an issue as they expand in the future, thus they feel as though a corporate form of the business is best. What are three advantages of choosing the corporate form of a business. Do you suggest that they issue preferred or common stock? State reasons for your answer.Start your trial now! First week only $4.99!*arrow_forward*

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Brianna and Britney are two sisters opening a clothing store with no other competition within the area. Both Brianna and Britney believe they will gain great profits in the first year, providing them with the ability to sell franchises in the future. They can start the business as a partnership, however it is believed that cash flow will be an issue as they expand in the future, thus they feel as though a corporate form of the business is best.

- What are three advantages of choosing the corporate form of a business.
- Do you suggest that they issue preferred or common stock? State reasons for your answer.

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