Question

In: Accounting

Which of the following is true of a corporation? A) Stock of a corporation can be...

Which of the following is true of a corporation?
A) Stock of a corporation can be publicly or privately held.
B) A corporation has to pay income taxes on its business earnings.
C) A corporation has a limited life.
D) The owners of a corporation have unlimited liabilities for the corporation's debts.

Solutions

Expert Solution

The following are true and false related to a corporation

A) Stock of a corporation can be publicly or privately held.- TRUE.

The given statement is true as stock and shares of a corportion can be both pubicly or privately held.Some corporation are traded only privately and not on the stock market and some others may be privately held

B) A corporation has to pay income taxes on its business earnings.-TRUE

Corporation tax which is popularly known as corporate tax is a direct tax which is levied on the net income or profit that corporate enterprise makes from their businesses

C) A corporation has a limited life.-FALSE

A Corporation has an unlimited life that is it operated forever unless the shareholder decide to intentinally dissolve it

D)The owners of a corporation have unlimited liabilities for the corporation's debts.-FALSE

A Corporation is an incorporated entitydesigned to limit the liabilty of its owner called shareholder.Generally shaeholders are not personally liable for the debt of the corporation

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ekkarill92 answered 2 years ago
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