Under the corporate form of business organization,

Question

Quizplus · Accepted Answer

Ownership rights in a corporation are easily transferable, either through the buying and selling of shares or by gifting them. This is one of the advantages of a corporation because it allows owners to liquidate or divest their holdings easily. The other options (B, C and D) are incorrect because stockholders in a corporation are generally not personally liable for the debts of the corporation (limited liability), corporations are subject to the Sarbanes-Oxley Act (a federal law aimed at improving corporate governance), and stockholders are not required to get the approval of other stockholders before selling their shares (although they may need to comply with SEC rules and regulations).

Under the Corporate Form of Business Organization