The Feature That Is Not a Characteristic of a Company

question 22

Multiple Choice

The feature that is not a characteristic of a company is:

• A) limited liability.
• B) less government regulation than other types of entities.
• C) legal entity.
• D) perpetual life.

Understand the roles and responsibilities of corporate officers and the certification of corporate records.

Comprehend the default purpose clause of a corporation and how corporations may engage in lawful business activities.

Recognize the legal implications of corporate actions in violation of laws and the principle of corporate criminal liability.

Learn about the powers of corporations as outlined by the Model Business Corporation Act.

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Definitions:

Compound Entry

An accounting entry that involves more than two accounts, recording multiple debits and/or credits in a single transaction.

Journal

A detailed record of all the financial transactions of a business, which are initially documented before summarizing in the ledger.

Posting

The process of transferring journal entry amounts to ledger accounts in accounting.

Analyze Each Transaction

The process of closely examining financial transactions to ensure they are accurately recorded in the correct accounts.