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. Any boxes left with a question mark will be automatically graded as incorrect.)
1. Ownership rights cannot be easily transferred
2. Owners have unlimited liability for corporate debts
3. Capital is more easily accumulated than with most other forms of organization.
4. Corporate income that is distributed to shareholders is usually taxed twice.
5. It is a separate legal entity. It has a limited life.
6. Owners are not agents of the corporation.

Answer 1

Answer: See explanation

Explanation:

1. Ownership rights cannot be easily transferred - False

The ownership rights can be transferred easily.

2. Owners have unlimited liability for corporate debts - False

They have a limited liability.

3. Capital is more easily accumulated than with most other forms of organization. - True

This is true as shares can be issued in order to generate capital.

4. Corporate income that is distributed to shareholders is usually taxed twice. -

True

5. It is a separate legal entity. - True

The corporate form of organization enjoys separate existence as their assets and the liabilities of the organization are different from their owners.

6. It has a limited life. - False

They've an unlimited life.

7. Owners are not agents of the corporation. - True

This is true. It should be noted that the owners aren't the agents of the corporation.