Which of the following statements is NOT TRUE?
A. Double taxation of income is a disadvantage of the corporate form of business organization.
B. Shareholders have unlimited liability for the obligations of the corporation which represents an important legal risk that equity investors must consider.
C. Corporations are assumed to have perpetual lives and partnerships have limited lives.
D. Ownership in a corporation is represented by equity shares and this implies that ownership can readily be transferred from one person to another.

Question

18-06-2024
Business

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Which of the following statements is NOT TRUE?
A. Double taxation of income is a disadvantage of the corporate form of business organization.
B. Shareholders have unlimited liability for the obligations of the corporation which represents an important legal risk that equity investors must consider.
C. Corporations are assumed to have perpetual lives and partnerships have limited lives.
D. Ownership in a corporation is represented by equity shares and this implies that ownership can readily be transferred from one person to another.

Sagot :

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