Which of the Following Is Not Characteristic of a Corporation

question 49

Multiple Choice

Which of the following is not characteristic of a corporation?

• A) The financial loss that a stockholder may suffer from owning stock in a public company is limited.
• B) Cash dividends paid by a corporation are deductible as expenses by the corporation.
• C) A corporation can own property in its name.
• D) Corporations are required to file federal income tax returns.

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Definitions:

Solicitation of Proxies

The process by which shareholders are asked to delegate their voting power to representatives to vote on their behalf at shareholder meetings.

Section 12

A specific segment or part within a legal document or statute that addresses a particular point of law.

Section 14(a)

Typically refers to a provision in the Securities Exchange Act of 1934 that deals with proxy solicitations.

Sarbanes-Oxley Act

A U.S. law passed in 2002 aimed at protecting investors by improving the accuracy and reliability of corporate disclosures.