Homework Answers
1. Ability to raise large capital amounts: High because buying stocks is attractive.
2. Duration of life: Indefinite
3. Government regulation : More severe than partnerships and proprietorships.
4. Legal status: Entity with similar rights as individual.
5. Mutual agency: Stockholders cannot bind corporation to contracts.
6. Owner authority and control : Shareholders elect board of directors.
7. Owner liability: Not liable for corporation actions or debt.
8. Tax status of income: Taxed a second time on owner's personal return.
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Next to the following list of eight characteristics of business organizations, select a brief description of...
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