Under the corporate form of business organization
A)a shareholder is personally liable for the debts of the corporation.
B)a shareholder's acts can bind the corporation even though he/she has not been appointed as an agent of the corporation.
C)the corporation's life is continuous.
D)shareholders wishing to sell their shares must get the approval of other shareholders.

Question

Quizplus · Accepted Answer

The corporate form of business organization allows for a continuous life, meaning the corporation exists independently of its owners' lives and can continue indefinitely until it is legally dissolved. Shareholders are not personally liable for the corporation's debts (eliminating A), their acts do not bind the corporation unless they are authorized agents (eliminating B), and shareholders can generally sell their shares without the approval of other shareholders, except in some cases of closely held corporations or specific shareholder agreements (eliminating D).

Under the Corporate Form of Business Organization