Which of the following is an advantage of forming a corporation?

Forming a corporation provides the significant advantage of limited liability on obligations of the corporation. This means that the shareholders of the corporation are generally not personally liable for the debts and obligations incurred by the corporation itself. If the corporation faces lawsuits or financial difficulties, the personal assets of the shareholders are typically protected. They can only lose the amount they have invested in the corporation, which encourages investment and entrepreneurial risk-taking without exposing personal assets.

In contrast, options related to high degrees of governmental supervision and regulation indicate potential disadvantages rather than benefits. While corporations are subject to various laws and a level of scrutiny, the extensive regulations can often complicate operational flexibility. Regarding juridical personality, a corporation has a strong, distinct legal identity, which allows it to own property, enter into contracts, and sue or be sued in its own name, contrasting with the notion of a weak juridical personality. Lastly, corporations often have centralized management structures, where decisions are made by a board of directors rather than being decentralized, which allows for more efficient and unified decision-making.