A corporation has which of the following set of characteristics?
A)Shareholder control, income tax disadvantages, increased skills and resources
B)Simple to set up and maintains control with founder
C)Harder to raise funds and gives shareholders control
D)Easier to transfer ownership and raise funds, no personal liability

Question

Quizplus · Accepted Answer

A corporation is a legal entity separate from its owners, meaning that it can own assets, enter into contracts, and incur liabilities on its own behalf. This allows for easier transfer of ownership through the buying and selling of stocks, as well as the ability to raise funds by selling stock to investors. Additionally, owners (known as shareholders) have limited liability, meaning that their personal assets are not at risk if the corporation incurs debts or is sued. However, corporations do have to pay income tax on their profits and may be subject to additional regulations and requirements.

A Corporation Has Which of the Following Set of Characteristics