Which of the following statements about a corporation is not correct?
A)A corporation is a separate legal entity.
B)A corporation has easy transferability of ownership.
C)A corporation may have the ability to raise large amounts of capital.
D)A corporation's owners have unlimited liability.

Question

Quizplus · Accepted Answer

The law recognizes a corporation as a separate legal entity.Ownership in a corporation can be easily transferred,and a corporation can raise large amounts of money because investors can easily participate in the ownership of a corporation.Creditors have no legal claim on the personal assets of stockholders like they do on the personal assets belonging to owners of sole proprietorships and partnerships.In other words,the corporate form limits the legal liability of its owners.

Which of the Following Statements About a Corporation Is Not