A Corporation Has Which of the Following Set of Characteristics

question 92

Multiple Choice

A corporation has which of the following set of characteristics?

• A)shareholder control, income tax disadvantages, increased skills and resources
• B)simple to set up and maintains control with founder
• C)harder to raise funds and gives shareholders control
• D)easier to transfer ownership and raise funds, limited liability

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Definitions:

Closing Entry

An accounting transaction recorded at the end of an accounting period to transfer the balances of temporary accounts to permanent ones.

Capital

Refers to financial assets or the financial value of assets, such as funds held in deposit accounts and/or funds obtained from special financing sources.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used in preparing financial statements.