Which of the Following Features of a Corporation Is LEAST

question 1

Multiple Choice

Which of the following features of a corporation is LEAST accurate?

• A) The owners' identities are separate from a corporation.
• B) The owners of a corporation are not liable for any obligations the corporation enters into.
• C) Changes in ownership do not result in the dissolution of the corporation.
• D) Earnings from a corporation are taxed only once.

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Definitions:

Investments Account

An account that holds securities, bonds, stocks, or other financial assets in the interest of an investor.

Dividends Received

Represents payments received by investors for owning shares in a company, typically issued from the company's profits.

Interest Paid

The total amount of interest payments made on borrowings (e.g., loans, bonds) during a given period.

Cash Flow Statement

A financial statement that shows the flow of cash in and out of a business during a specific period, highlighting operating, investing, and financing activities.