Which of the Following Is NOT a Characteristic That Distinguishes

question 127

Multiple Choice

Which of the following is NOT a characteristic that distinguishes corporations from proprietorships and partnerships?

• A)Corporations have continuous lives regardless of changes in ownership.
• B)Corporations have mutual agency.
• C)Corporations are separate legal entities apart from the owners.
• D)Corporate earnings are subject to double taxation.

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Definitions:

Straight-Line Depreciation

A strategy for apportioning the cost of an asset consistently throughout its period of use.

Capital Budgeting

The process of evaluating and selecting long-term investments that are consistent with the firm's goal of value maximization.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an equal amount each year.

Capital Budgeting

Capital budgeting involves the evaluation and selection of long-term investments that are expected to generate cash flows and contribute to a company's growth.