Which of the following is not a characteristic of a corporation?
A) The financial loss that a stockholder may suffer from owning stock in a public company is limited.
B) Cash dividends paid by a corporation are deductible as expenses by the corporation.
C) A corporation can own property in its name.
D) Corporations are required to file federal income tax returns.

Question

Quizplus · Accepted Answer

Cash dividends paid by a corporation are not deductible as expenses by the corporation. Instead, they are considered distributions of earnings to stockholders and are taxed as dividends on the stockholder's individual tax returns.

Which of the Following Is Not a Characteristic of a Corporation