Question

List the characteristics typical of a c corporation

Answer 1

Answer:

The five main characteristics of a c corporation are:

1. limited liability: the owners' liability is determined by the amount of money they invested in purchasing the corporation's stock.
2. corporations are owned by stockholders: every single stockholder owns a piece of the corporation, the size of that piece is determined by the amount of stocks.
3. double taxation: owners of the corporation suffer from double taxation because first the corporation must pay corporate taxes and then the owners must pay income taxes when they receive dividends.
4. corporations are separate entities: corporations exist by themselves, they are born when they are created and die when they are dissolved.
5. corporations are professionally managed: the owners elect a board of directors and the board is responsible for hiring professional management.

Explanation: