Which One of the Following Is Not a Characteristic of a Corporate

question 113

Multiple Choice

Which one of the following is not a characteristic of a corporate legal structure?

• A) Unlimited liability
• B) Double taxation
• C) Continuity of ownership
• D) Managerial autonomy
• E) Ease of raising money

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Definitions:

Capital Injection

A capital injection is the infusion of funds into a business by its owners or external parties, often to shore up its financial health or expand operations.

Bankruptcy

A legal process for individuals or businesses that are unable to repay their outstanding debts, allowing them to eliminate or repay some or all of their debts under the protection of the bankruptcy court.

Credit

Credit refers to the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources (or other materials of equal value) at a later date.

RULLCA

The Revised Uniform Limited Liability Company Act, which provides a comprehensive legal framework for the formation, operation, and dissolution of LLCs in the jurisdictions that adopt it.