Which of the following isnot 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 their individual owners' resources.

Question

Quizplus · Accepted Answer

The statement "A corporation's resources are limited to their individual owners' resources" is not a characteristic of a corporation. Corporations have the advantage of limited liability, meaning the company's debts and obligations are separate from the individual owners' personal finances. This allows corporations to access larger amounts of resources through the issuance of stocks without putting the personal assets of the owners at risk.

Which of the Following Isnot a Characteristic of a Corporation