Bb finance week 2

It is therefore important to organize the corporation for issuing stock. To start the business, they have to register the corporation with the company and state acts (Lawrence, 2019). Doing this will enable them to raise shares from the public by issuing shares. The shares can be issued in form of preferred or common stock. As a result, the cash flow of starting the corporation will be obtained. Many financial institutions require a business to be incorporated when borrowing funds so that they are to sue the corporation when they fail to pay debts. The transfer of ownership can also be made through the sale of shares. I would recommend the issue of common stock rather than preferred stock at the beginning of the business.