Homework Answers
ANSWER:
| Characteristics | Descriptions | |
|---|---|---|
| 1 | Legal status | stockholders cannot bind corporation to contracts |
| 2 | Mutual agency | entity with similar rights as individual |
| 3 | Owner authority and control | shareholders elect board of directors |
| 4 | Owner liability | not liable for corporation actions or debt |
| 5 | Tax status of income | taxed a second time on owners personal return |
| 6 | Transferability of ownership | easily bought and sold |
| 7 | Ability to raise large capital amounts | high liability |
| 8 | Duration of life | unlimited |
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