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.

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Definitions:

Finance Companies

Businesses that offer short-term loans at substantially higher rates of interest than banks.

Stocks and Bonds

Financial instruments; stocks represent ownership shares in a company, while bonds are loan agreements between the bond issuer and an investor.

Comparable Units

Units or measures that are similar enough in key aspects to be used in comparisons or evaluations.