Question

Of the following statements, which 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.) Directors oversee its business affairs. unchecked Ownership is usually transferred readily. unchecked Stockholders do not have the power to bind the corporation to contracts. unchecked It has a continuous life. unchecked Generally there is no double taxation on corporate income that is distributed to owners. unchecked It is not a separate legal entity from its owners. unchecked Owners are liable for debt and the acts of the corporation.

Answer 1

Answer:

Statements are:

• Ownership is usually transferred readily.  = False as it is generally permanent.
• Stockholders do not have the power to bind the corporation to contracts.  = True as this power for daily business lies with directors.
• It has a continuous life. = True as said people may come people may go but a company goes on forever.
• Generally there is no double taxation on corporate income that is distributed to owners. = False as income in hands of shareholders is taxed twice generally.
• It is not a separate legal entity from its owners. = False as the owners are always different then that of entity they posses a separate legal identity.
• Owners are liable for debt and the acts of the corporation. = False as the owners of corporation has limited liability they are not completely responsible for debts and acts of company there is separate legal identity.