Which of the following is a characteristic of a corporation?
A)It allows one or more partners to have limited liability.
B)It requires one or more of the partners to be a general partner to whom the privilege of limited liability does not apply.
C)It prohibits the limited partners from participating in the management of the partnership.
D)It is legally owned by its current set of shareholders.

Question

Quizplus · Accepted Answer

A corporation is a legal entity that is separate and distinct from its owners/shareholders. This means that the corporation is owned by its current set of shareholders, and they are not personally liable for the debts and obligations of the corporation. Additionally, a corporation allows for the transfer of ownership through the buying and selling of shares, providing a level of flexibility not found in other business structures.

Which of the Following Is a Characteristic of a Corporation