Characteristics of a corporation include
A) shareholders who are mutual agents
B) direct management by the shareholders (owners)
C) its inability to own property
D) shareholders who have limited liability

Question

Quizplus · Accepted Answer

A key characteristic of a corporation is that its shareholders have limited liability. This means that they are not personally responsible for the debts and obligations of the corporation beyond the amount of their investment in the company. The other options listed are incorrect - shareholders are not mutually agents, as this would imply they act on behalf of each other, and shareholders do not directly manage the corporation as this is typically done by a board of directors and executive team. Additionally, corporations are legally recognized as separate entities from their owners and can own property.

Characteristics of a Corporation Include