Which of the following characteristics of a company business structure is true?
A) Owners have limited liability.
B) Easy to set up.
C) Not a separate legal entity.
D) Owners pay individual tax on company profits.

Question

Quizplus · Accepted Answer

The characteristic that is true is that owners have limited liability. This means that their personal assets are protected if the business incurs debts or legal actions. Option B is incorrect because a company business structure is typically more complicated to set up than other structures like a sole proprietorship or partnership. Option C is also incorrect because a company is a separate legal entity, which means it can be sued or sue others, enter into contracts, and own assets. Option D is incorrect because a company is taxed separately from its owners, meaning that profits are subject to corporate tax rates before being distributed to shareholders as dividends or retained earnings.

Which of the Following Characteristics of a Company Business Structure