Which of the following is not a characteristic of a corporation?
A) Corporations are organized as a separate legal taxable entity.
B) Ownership is divided into shares of stock.
C) Corporations experience an ease in obtaining large amounts of resources by issuing stock.
D) A corporation can elect to be taxed as a partnership.

Question

Quizplus · Accepted Answer

A corporation cannot elect to be taxed as a partnership. Instead, it is taxed as a separate legal entity, and may elect to be taxed under subchapter S of the tax code, which allows the corporation to avoid double taxation by passing through profits and losses to shareholders.

Which of the Following Is Not a Characteristic of a Corporation