Under the corporate form of business organization
A) a stockholder is personally liable for the debts of the corporation.
B) stockholders' acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation.
C) the corporation's life is stipulated in its charter.
D) stockholders wishing to sell their corporation shares must get the approval of other stockholders.

Question

Quizplus · Accepted Answer

The corporation's life is stipulated in its charter, which sets forth the duration of the corporation's existence, which can be perpetual or for a specific period of time. A stockholder is not personally liable for the debts of the corporation in a corporate form of business organization. Stockholders' acts cannot bind the corporation unless they have been appointed as agents of the corporation. Stockholders are not required to get approval from other stockholders to sell their shares in a corporation, although there may be restrictions and procedures set forth in the corporation's bylaws or shareholder agreements.

Under the Corporate Form of Business Organization