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:

Deposit

A sum of money placed in a bank account or paid as the first installment on a purchase, establishing a right to the full ownership or to secure a contract.

Birthday Money

A non-formal term usually referring to money received as a gift on one's birthday.

Compounded Monthly

A method where interest is added to the principal sum at the end of each month, with each subsequent calculation including interest on interest.

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage.