A business organized as a corporation:
A)is not a separate legal entity in most provinces.
B)requires that shareholders be personally liable for the debts of the business.
C)is owned by its shareholders.
D)has income tax disadvantages over a proprietorship or partnership.

Question

Quizplus · Accepted Answer

A corporation is owned by its shareholders, who have limited liability for the debts and actions of the business. This means that their personal assets are generally protected from being used to pay off debts or legal judgments against the corporation. Corporations also have certain tax advantages, such as the ability to deduct business expenses and income splitting opportunities.

A Business Organized as a Corporation