Question

Identify which of the following statements are true for the corporate form of organization. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

Ownership rights cannot be easily transferred
Ownership rights cannot be easily transferred
Owners have unlimited liability for corporate debts
Capital is more easily accumulated than with most other forms of organization.
Corporate income that is distributed to shareholders is usually taxed twice.
It is a separate legal entity.
It has a limited life.
Owners are not agents of the corporation.

Answer 1

Statements that are true:

a. Capital is more easily accumulated than with most other forms of organization.

b. Corporate income that is distributed to shareholders is usually taxed twice.

c. It is a separate legal entity.

d. Owners are not agents of the corporation.

In a corporation, capital is more easily accumulated because the company has easier access to loans and can go into the stock market to get more capital.

Corporate income to shareholders is taxes twice. First is when the net income is taxed, second is when the dividends are taxed.

Corporations are a separate entity from their companies which means they are not held for the debt if the company.

Owners are not agents of the corporation. They are the Principal.