Which of the Following Corporate Characteristics Is a Disadvantage of a Corporation

question 251

Multiple Choice

Which of the following corporate characteristics is a disadvantage of a corporation?

• A) Stockholders have limited liability.
• B) A corporation has a continuous life.
• C) There is no mutual agency between the stockholders and the corporation.
• D) Earnings of a corporation may be subject to double taxation.

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Definitions:

Empirically

Refers to knowledge or information gained through observation, experience, or experiment rather than through theory or pure logic.

Reaction Formation

Disguising unconscious content by turning it into its opposite.

Repression

A psychological defense mechanism where unpleasant thoughts, feelings, or desires are excluded from conscious awareness.

Denial

A psychological defense mechanism where a person refuses to accept reality or facts, effectively protecting themselves from uncomfortable or painful emotions.