Question

Pips Burrito Company, started by Mr. Pips, began as just a single man operating out of a small stand by the side of the road, but over the years it grew. Now, 50 years later, the company is listed on the NYSE, something Mr. Pips might have never imagined possible. The fact that Pips Burrito company lives on well past the original entrepreneur best characterizes which feature of corporations? A) Unlimited Life B) Double Taxation C) Limited Liability D) Unlimited Liability

Answer 1

The correct answer is option A) "Unlimited Life". A company that has Unlimited Life is a company that will operate forever unless it is formally dissolved. Pips Burrito has lived well past the small business that ran side by the road, the fact that now is listed on the NYSE after 50 years of operation, is an example of a strong company that would operate forever unless it is formally dissolved.

Answer 2

The correct answer is A) Unlimited life since public companies can live more time or for ever as it is said in business.