Which of the Following Statements Describes the Corporate Characteristic of Easy

question 76

Multiple Choice

Which of the following statements describes the corporate characteristic of easy transfer of corporate ownership?

• A) The liabilities of the corporation cannot be extended to the personal assets of the shareholder.
• B) Shares of stock can be readily bought and sold by investors on the open market.
• C) Shareholders are not authorized to sign contracts or make business commitments on behalf of the corporation.
• D) Corporations pay income tax on corporate earnings, and shareholders pay personal income tax on corporate dividends and gains from sale of stock.

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Definitions:

Testify

To give a formal statement of fact or evidence under oath in a court of law.

Credible

Being trustworthy or believable, especially in the context of sources of information or evidence.

Unbiased

Showing no prejudice or favoritism, maintaining impartiality.

Recorded Interview

An interview whose contents have been documented through audio or video recording.