What are the major advantages and disadvantages of the corporate organization?

Answer 1

The major advantage is the fact that a corporation is a legal entity. This means that if the corporation goes bankrupt or incurs a lot of debt the creditors can only go after the assets of the corporation, not the personal assets of its owners (i.e. the stockholders). This isn't true of a sole proprietorship or a partnership; if these go under and you own a piece of the business, your house, car, bank account, etc. are all fair game.

The major disadvantage of a corporation is taxes. Corporate tax rates tend to be much higher than for partnerships or sole proprietorships.