A Corporation Possesses All but One of the Following Characteristics

question 108

Multiple Choice

A corporation possesses all but one of the following characteristics.Which of the following is NOT a characteristic of a corporation?

• A) If a corporation cannot pay its debts, lenders can take the owners' personal assets to satisfy the obligations.
• B) A corporation is a distinct entity in the eyes of the law.
• C) Corporation ownership is divided into shares of stock.
• D) A corporation is owned by shareholders or stockholders.

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Definitions:

Misrepresentation

The act of providing false information with the intent to deceive, often leading to harm or loss.

Contractual Obligations

Duties that are legally required to be performed under the terms of a contract.

Foreseeable Loss

Losses that could have been anticipated or predicted as a consequence of an action or inaction, relevant in determining liability.

Non Est Factum

A defense in contract law where a party claims they were mistaken about the nature of the document signed, not merely its terms.