Question 5 Of the following statements, which are true for the corporate form of

Question

Question 5

Of the following statements, which are true for the corporate form of organization?

Owners have limited liability for corporate debts

Directors oversee its business affairs Stockholders do not have the power to bind the corporation to contracts

Transfer of ownership rights among owners generally does not impact equity

Compared to other forms of organization-capital (financing) is more difficult to accumulate

Generally there not double taxation on corporate income that is distributed to owners

Owners are agents of the corporation

Explanation / Answer

true. owners(shareholders) have limited liability

true. corporate form does not have seperate legal entity. directors oversees its affairs

true. beacuse of no seperate legal entity

true

false. there is double taxation disadvantage because taxes are payed on income earn and when dividend distribited among shareholders they then also pay taxes on them. thus, double taxation

the agents of corporation are generally considered board of directors officers or other persons the corporation aithorizes to act on the behalf.

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