A Disadvantage of Corporations Is That Their Charters Are Only

question 337

True/False

A disadvantage of corporations is that their charters are only valid for 99 years, so corporations are less permanent than other types of businesses.

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Definitions:

Capital Distributions

Capital distributions are payments made by a corporation to its shareholders from its capital base, as opposed to payments made from earnings or profit.

Liquidation Expenses

Costs associated with disbanding a company or partnership, including selling off assets, paying off creditors, and distributing any remaining assets to shareholders or partners.

Deficit Capital Account

A situation where a company's capital account balance is negative, indicating that liabilities exceed assets.

Proposed Schedule

A planned timeline for activities or events, awaiting approval or finalization.