Which of the Following Is Not a Characteristic of a Corporation

question 4

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 can elect to be taxed as a partnership.

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Definitions:

Inequality

A mathematical statement that indicates that two expressions are not equal, using symbols such as <, >, ≤, or ≥.

Operating Cost

Expenses associated with the day-to-day running of a business, such as rent, utilities, and salaries.

Annual

Occurring once every year.