Which of the following statements is NOT TRUE? Question 3 options: Double taxation of income is...
Which of the following statements is NOT TRUE?
Question 3 options:
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Double taxation of income is a disadvantage of the corporate form of business organization. |
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Shareholders have unlimited liability for the obligations of the corporation which represents an important legal risk that equity investors must consider. |
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Corporations are assumed to have perpetual lives and partnerships have limited lives. |
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Ownership in a corporation is represented by equity shares and this implies that ownership can readily be transferred from one person to another. |
Homework Answers
Shareholders will always be having a limited liability for the obligation of the corporation which will be representing that shareholders of the company will only be exposed to the amount of shares they are holding and they do not have any personal liability in their personal capacity.
All the other statements are true in nature.
Correct answer will be option (B) shareholders have unlimited liability for the obligation of the corporation which represent an important legal risk that equity investor must consider
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Which of the following statements is NOT TRUE?
Question 3 options:
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