Which of the following statements is true of corporations?
A) Corporations do not have to pay income taxes on their profits.
B) In comparison with partnerships, corporations are more costly to form.
C) A corporation's organizational structure changes whenever a shareholder sells his or her stock.
D) In comparison with proprietorships, corporations are easier to form.
E) The law treats a corporation's existence in tandem with its owners' status as shareholders.

Question

Quizplus · Accepted Answer

In comparison with partnerships, corporations are more costly to form. A corporation is an artificial, intangible entity created under the authority of a state's law.

Which of the Following Statements Is True of Corporations