Which of the Following Is Not One of the Criteria

question 16

Multiple Choice

Which of the following is not one of the criteria used to decide corporation treatment?

• A) Unlimited liability
• B) Continuity of Life
• C) Centralization of management
• D) Free transferability of interests

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Definitions:

Warranty of Authority

A guarantee made by an agent that they have the authority from their principal to perform a certain act.

Authority

The power or right to give orders, make decisions, and enforce obedience, seen in contexts ranging from legal to organizational structures.

Deceased Principals

Deceased principals involve situations in agency relationships where the principal has passed away, affecting the continuation or validity of agreements made with agents.

Agency

A relationship where one party, the agent, is authorized to act on behalf of another, the principal, in dealings with third parties.