Which of the Following Is Not a Characteristic of a Corporation

question 122

Multiple Choice

Which of the following is not a characteristic of a corporation?

• A) Corporations are organized as a separate legal taxable entity.
• B) Ownership is divided into shares of stock.
• C) Corporations experience an ease in obtaining large amounts of resources by issuing stock.
• D) A corporation's resources are limited to its individual owners' resources.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them a proportionate interest in the company's earnings and assets.

Tax Advantages

Financial strategies or conditions that reduce the amount of tax payable to the government.

Incorporation

The process of legally declaring a corporate entity as separate from its owners, providing limited liability and other benefits.

Shareholders

Individuals or entities that own shares in a company, giving them ownership stakes and possibly the right to vote on corporate matters.