Question

Under the corporate form of business organization,

a.corporations are not subject to the Sarbanes-Oxley Act.
b.stockholders wishing to sell their corporate shares must get the approval of other stockholders.
c.a stockholder is personally liable for the debts of the corporation.
d.ownership rights are easily transferred.

Answer 1

Answer: Option D

Step-by-step explanation: In simple words, corporate form of business organisation refers to a structure in which the business firm and its owners are considered to be separate legal entity.

In such a structure the owners are not personally liable for the liabilities of the company thus they are inexpedient to transfer their ownership rights to anyone as no party will be affected by their obligations.

Although in some situation where a fraud has been commuted, regulatory authorities can help the owners liable for the losses or liabilities as those costs are taken up by the managers while doing a corporate misconduct.

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