Asked by theresa betty on Jun 25, 2024
Verified
A business organized as a corporation
A) is not a separate legal entity in most provinces.
B) requires that shareholders be personally liable for the debts of the business.
C) is owned by its shareholders.
D) has income tax disadvantages over a proprietorship or partnership.
Legal Entity
An organization or business that is legally recognized as a separate entity from its owners, holding rights and responsibilities.
Shareholders
Individuals or entities that own shares in a corporation, giving them ownership interests and rights to dividends, voting, and assets upon dissolution.
Corporation
A legal entity that is separate and distinct from its owners, offering limited liability to its shareholders, and having the ability to own assets, sue, and be sued.
- Achieve an understanding of the differentiation among different business organizations and their qualities.
Verified Answer
QG
Quneshial GivensJul 01, 2024
Final Answer :
C
Explanation :
Corporations are owned by their shareholders, who invest money in the business by buying shares of the company. This ownership structure is a fundamental characteristic of corporations.
Learning Objectives
- Achieve an understanding of the differentiation among different business organizations and their qualities.