Under the corporate form of business organization,
A) ownership rights are easily transferred
B) a stockholder is personally liable for the debts of the corporation
C) stockholders' acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation
D) stockholders wishing to sell their corporate shares must get the approval of other stockholders

Question

Quizplus · Accepted Answer

Under the corporate form of business organization, ownership rights are easily transferable through the buying and selling of stocks or shares. This is one of the advantages of the corporate form and allows for greater liquidity of ownership. Options B, C, and D are incorrect. A stockholder is not personally liable for the debts of the corporation in the corporate form (limited liability is a key feature); stockholders' acts do not typically bind the corporation unless they have been appointed as agents or have been given express authority to act on behalf of the corporation; and approval of other stockholders is not typically required for the sale of corporate shares.

Under the Corporate Form of Business Organization