All of the Following Are Characteristics of a Corporation EXCEPT

question 21

Multiple Choice

All of the following are characteristics of a corporation EXCEPT:

• A) it has perpetual existence.
• B) it is a legal entity of its own.
• C) it is able to be sued and to sue.
• D) it is usually managed by its shareholders.

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Definitions:

Deferred Tax Liability

This is a tax obligation due in the future for income that has already been recognized in the financial statements.

Carrying Values

The book value of assets and liabilities as reported on the balance sheet, accounting for depreciation, amortization, and impairment.

Fair Values

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Tax Bases

The amount upon which taxes are assessed, including income, property values, or sales, providing a foundation for tax calculations.