Which of the following statements about the organization of firms is true?
A)Owners of a corporation have unlimited liability.
B)Corporations have limited access to money markets.
C)Crown corporations are never interested in increasing profits because they have other goals.
D)Partnerships are the most common form of business organization in Canada.
E)Owners of a corporation are not personally liable for the firm's actions,though its directors may be.

Question

Quizplus · Accepted Answer

Owners of a corporation are not personally liable for the firm's actions, though its directors may be. This is because corporations have a separate legal personality from their owners, which means that the corporation can be sued or held liable for its own actions and debts, rather than the individual owners being held personally responsible.

Which of the Following Statements About the Organization of Firms