Which of the Following Is Not True About a Corporation

question 23

Multiple Choice

Which of the following is not true about a corporation?

• A) A corporation is a person in law.
• B) The corporation exists on the same principles as a partnership.
• C) The primary advantage of incorporation is limited liability.
• D) A corporation has perpetual existence.
• E) A corporation has limited liability.

---

Definitions:

Schedule E

Schedule E is a tax form used by landlords, S corporation shareholders, and partners in partnerships to report their share of income, losses, and deductions.

Capital Improvements

Expenditures creating a benefit to a property over its existing state, often enhancing its value or extending its life.

Schedule K-1

A tax document used to report the income, deductions, and credits of a partnership or S corporation to its partners or shareholders.

Business Revenue

The total income generated by a company from its normal business operations before any expenses are subtracted.