Due to the recent beef recalls, Southern Steakhouse is considering incorporating. Bill, the owner, wants to protect his personal assets in the event the restaurant is sued. Which advantage of incorporating is most applicable? 8 Stockholders have limited liability.
Paid-in capital (Contributed capital) Amounts received from stockholders Common stock is main source Externally generated Resulting from transactions with outsiders Retained earnings Earned by profitable operations Internally generated Results from internal corporate decisions to retain net income for use in the company 12