Which of the following is true about corporations?
A) A corporation's owners are not subject to double taxation.
B) The professional executives who manage a corporation must own a significant portion of the company's stock.
C) From a legal perspective, the firm and its owner are considered one and the same in a corporation.
D) A corporation mixes attractive features of a sole proprietorship and a partnership.
E) A corporation's owners do not directly receive profits or absorb losses.

Question

Quizplus · Accepted Answer

Corporations are separate legal entities from their owners, meaning the profits and losses are not directly passed to the owners. Instead, profits are distributed as dividends, and losses do not directly affect the owners' personal finances.

Which of the Following Is True About Corporations