A Corporation Is

question 97

Multiple Choice

A corporation is

• A) owned by stockholders who enjoy the privilege of limited liability.
• B) easily divisible between owners.
• C) a separate legal entity with perpetual life.
• D) all of these.

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Definitions:

Certificate of Limited Partnership

A legal document filed with a state governmental body that officially recognizes a limited partnership's existence.

Capital Contributions

Monetary or non-monetary assets provided by partners or shareholders to increase the capital of a partnership or corporation.

LLC

A limited liability company, which is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Distribution of Profits

The allocation of a company's earnings to its shareholders or owners, typically in the form of dividends.