A Corporation Differs from a Partnership Because the Corporation

question 91

Multiple Choice

A corporation differs from a partnership because the corporation

• A) is owned by people who enjoy limited liability.
• B) has a lower debt ratio.
• C) is characterized by limited profits.
• D) is required to own a seat on a stock exchange.
• E) has no tax liability.

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Definitions:

Legislative Laws

Statutes and regulations enacted by a legislature or other governing body to prescribe conduct, establish duties, and regulate society.

Uniform State Laws

Model statutes drafted by legal experts to achieve consistency in areas of law within different states, which states can adopt or modify as they see fit.

Uniform Commercial Code

An extensive suite of laws that encompasses all facets of commercial trade in the United States.

State Codes

Statutory laws adopted by individual states in the United States, governing various legal subjects.