Which of the following statements about corporations is true?
A) Individual owners of a corporation are called directors.
B) A corporation may have any number of owners, as long as that number is consistent with the laws of the state of incorporation.
C) A corporation has few of the same rights and duties as an individual.
D) In the event of a lawsuit, an individual owner of a corporation may be held liable for more than his or her current investment.
E) One owner of a corporation could be forced to pay all the corporation's debts if the other owners were unable to pay their "fair" share.

Question

Quizplus · Accepted Answer

Corporations can indeed have any number of owners (shareholders), and this number can vary widely, subject only to the laws and regulations of the state in which they are incorporated. This flexibility in ownership is one of the characteristics that make the corporate structure appealing for many types of businesses.

Which of the Following Statements About Corporations Is True