Which of the following is not a characteristic of a corporation?
A)Limited liability of shareholders.
B)Perpetual existence.
C)Pass-through taxation.
D)Centralized management.

Question

Quizplus · Accepted Answer

Pass-through taxation is not a characteristic of a corporation, but rather of a pass-through entity such as a partnership or sole proprietorship. Corporations are subject to double taxation, meaning that profits are taxed at both the corporate level and the individual shareholder level. This is a disadvantage compared to pass-through entities, where profits are only taxed once at the individual level. The other choices (A, B, and D) are all characteristics of a corporation.

Which of the Following Is Not a Characteristic of a Corporation