Under the corporate form of business organization

Question

Quizplus · Accepted Answer

The corporation's life is stipulated in its charter. This means that the charter sets forth the duration of the corporation's existence, which may be perpetual or for a specified time period. A) is incorrect because under the corporate form of business organization, shareholders are generally not personally liable for the debts of the corporation. B) is incorrect because shareholders are not agents of the corporation and therefore cannot bind the corporation through their actions. D) is incorrect because shareholders are generally free to sell their shares without the approval of other shareholders, although certain restrictions may be imposed by the corporation or its bylaws.

Under the Corporate Form of Business Organization