Which of the following statements about the operation of a corporation is correct?
A) A corporation receives its charter from a state government.
B) A corporate charter automatically expires in 99 years and must be renewed if the corporation wants to remain in business.
C) Owners of a corporation have unlimited liability for any claims against their company.
D) A corporation tends to be much easier to set up than a sole proprietorship or partnership.

Question

Quizplus · Accepted Answer

A corporation receives its charter from a state government, which allows it to operate as a legal entity separate from its owners. This charter outlines the corporation's purpose, structure, and governance, and it must be obtained and maintained in order for the corporation to conduct business.

Which of the Following Statements About the Operation of a Corporation