Identify a characteristic of the corporate form of organization.

Question

Quizplus · Accepted Answer

One characteristic of the corporate form of organization is that it has the legal standing of an individual and can participate in law-suits. This means that the corporation can enter into contracts, sue or be sued, and hold property in its own name. Option A is incorrect because the top management of a corporation typically has limited liability, meaning that their personal assets are not at risk in the event of the corporation's financial troubles. Option B is incorrect because corporations have the discretion and authority to issue stock. Option D is incorrect because corporations are typically run by a board of directors elected by the shareholders, not the government.

Identify a Characteristic of the Corporate Form of Organization