Which of the following is not a characteristic of a corporation?
A) Corporations are organized as a separate legal taxable entity.
B) Ownership is divided into shares of stock.
C) Corporations experience an ease in obtaining large amounts of resources by issuing stock.
D) A corporation's resources are limited to its individual owners' resources.

Question

Quizplus · Accepted Answer

Corporations are separate legal entities, with ownership divided into shares of stock. They can easily raise large amounts of resources by issuing stock. However, a corporation's resources are not limited to its individual owners' resources, as it has the ability to borrow, issue bonds, and engage in other forms of financing.

Which of the Following Is Not a Characteristic of a Corporation