Which of the following is true of a corporation?
A)A corporation is not a tax-paying entity for federal income tax purposes.
B)A corporation does not have a life separate from its owners and its managers.
C)A corporation has the ability to attract capital,more than the limited partnership.
D)A corporation is owned by partners who have founded the business and have the right to manage it.

Question

Quizplus · Accepted Answer

Because investors may contribute capital to the business,avoid unlimited liability,escape the obligation to manage the business,and easily liquidate their investments by selling their shares,the corporation has the ability to attract large amounts of capital,even more than the limited partnership,or LLLP,whose partnership interests are not as freely transferable.

Which of the Following Is True of a Corporation