Which of the following is not a characteristic that distinguishes corporations from proprietorships and partnerships?
A) Corporations are separate legal entities apart from the owners.
B) Corporations have continuous lives regardless of changes in ownership.
C) Shareholders of a corporation are not permitted to transfer shares as they wish.
D) Corporate earnings are subject to double taxation.

Question

Quizplus · Accepted Answer

This statement is incorrect as shareholders of corporations are generally allowed to transfer shares freely, though there may be restrictions imposed by the corporation or by law. The other characteristics listed (separate legal entities, continuous lives, and double taxation) are all typical of corporations and distinguish them from proprietorships and partnerships.

Which of the Following Is Not a Characteristic That Distinguishes