(c) A major advantage is that shareholders have limited
liability, that is, typically limited to what they paid for the stock.
However, managers do not have limited liability for their actions
as managers. If a manager is also a shareholder, that person has
limited liability for the ownership in the stock but can still be
sued for misdeeds as a manager. Answers (a), (b), and (d) are all
considered to be advantages of a corporation. Note that since a
person can manage a corporation without necessarily being an
owner, this can encourage professional managers to get involved.