Under the corporate form of business organization,

Question

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The corporate form of business organization stipulates the life of the corporation in its charter, which serves as the legal document outlining the corporation's purpose, governance structure, and operations. This means that the corporation's existence is not dependent on the lives of its stockholders, and it can continue to exist even if its original stockholders sell their shares or pass away. Option A is incorrect because one of the main advantages of the corporate form of business is that it limits the stockholders' liability to the amount of their investment in the corporation. Option B is incorrect because stockholders can only bind the corporation if they have been appointed as agents, either by the board of directors or by the corporation's bylaws. Option D is incorrect because stockholders generally have the right to sell their shares without approval from other stockholders, although restrictions on the transfer of shares may be included in the corporation's bylaws.

Under the Corporate Form of Business Organization