Which of the following statements is NOT true of a corporation?
A) A corporation is taxed as a separate legal entity.
B) A corporation has easy transferability of ownership.
C) A corporation may have the ability to raise large amounts of capital.
D) A corporation's owners have unlimited liability.

Question

Quizplus · Accepted Answer

The statement "A corporation's owners have unlimited liability" is not true. In a corporation, the owners have limited liability, meaning their personal assets are protected from the debts and liabilities of the corporation.

Which of the Following Statements Is NOT True of a Corporation