Which of the following statements about the operation of a corporation is correct?
A)A corporate charter automatically expires in 99 years and must be renewed if the corporation wants to remain in business.
B)Owners of a corporation have unlimited liability for any claims against their company.
C)A corporation tends to be much easier to set up than a sole proprietorship or partnership.
D)A corporation receives its charter from the federal or a provincial government.

Question

Quizplus · Accepted Answer

A corporation receives its charter from the federal or a provincial government, and the charter does not automatically expire. The owners of a corporation have limited liability, meaning their personal liability is limited to the amount of their investment in the corporation. Setting up a corporation can be more complicated than a sole proprietorship or partnership due to the legal and regulatory requirements.

Which of the Following Statements About the Operation of a Corporation