Got an Ideal but Don’t Want to Risk it All?
In some cases a corporation will not replace the preexisting business but will merely enhance the existing business and assist it in pursuing its markets, or entering into new
markets, while limiting the exposure of the existing business to the risks of these new markets. The existing business may provide both the capital and management expertise
to pursue the business without actually managing the new venture or directly controlling the new business. In this way, an existing business can expand or change its
business by investing some but not all of its assets and credit in a new enterprises while maintaining and protecting both the assets and liquidity of its current operations.