Which of the Following Isnot a Characteristic of a Corporation

question 186

Multiple Choice

Which of the following isnot 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) Corporation's resources are limited to its individual owners' resources.

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Definitions:

Sole Proprietorship

A business owned and operated by one person, where there is no legal distinction between the owner and the business entity.

High-Coupon Bonds

Bonds that offer interest rates significantly above the market average to attract investors despite potential risks.

Low-Coupon Bonds

Bonds that offer a lower interest rate compared to other bonds on the market.

Interest Rates

Interest Rates are the cost of borrowing money, expressed as a percentage of the amount borrowed, that is charged by lenders to borrowers for the use of their funds.