Question

The growth of business led to the development of a new type of business organization called the corporation.which was a characteristic of a corporation

Answer 1

The Characteristic of a corporation is that none of the company’s stockholders was legally responsible if the company went bankrupt. So this means that the stockholders do not have the responsibility or do not have any debt if ever the corporation will bankrupt.

Answer 2

The correct answer here would be that none of the company’s stockholders was legally responsible if the company went bankrupt.

The corporations are considered to be the most powerful not to mention influential business entities in the world. They are comprised of multiple groups or multiple people that are allowed to act as a single entity and are in the eyes of the law recognized as legal person. One of the advantages of a corporation is that stockholders are not legally responsible for the company's bankruptcy.