Identify a Feature of Corporations

question 11

Multiple Choice

Identify a feature of corporations.

• A)They allow entities to grow the larger economy.
• B)They prohibit entities from industrializing.
• C)They have sole ownership.
• D)They have unlimited personal liability.

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Definitions:

Dividend Reinvestment Plan

A program that allows investors to automatically reinvest their cash dividends in more shares of the issuing company.

Tax Deferred

A status of investment earnings, such as interest or dividends, that are not subject to tax until they are withdrawn or realized at a future date.

Equity Capital

The funds raised by a company through the sale of common or preferred shares, representing ownership interests in the company.

Floatation Costs

The expenses incurred by a company in issuing new securities, including underwriting, legal, and registration fees.