Which of the following statements is true?
A) Common shares have a dividend rate fixed by the share contract.
B) Preferred shares have a volatile market value therefore, they are a riskier investment than common shares.
C) Corporations are not always considered to be a separate legal entity.
D) Transfer of ownership is easy with a corporation.

Question

Quizplus · Accepted Answer

Corporations are considered separate legal entities, which allows for the easy transfer of ownership through the sale of stocks or shares. This feature is one of the key advantages of the corporate form of organization, facilitating investment and changes in ownership without affecting the corporation's operations.

Which of the Following Statements Is True