Which of the following statements about the organization of firms is true?
A)Partnerships are the most common form of business organization in Canada.
B)Owners of a corporation have unlimited liability.
C)Corporations have limited access to money markets.
D)Owners of a corporation are not personally liable for the firm's actions,though its directors may be.
E)Crown corporations are never interested in increasing profits because they have other goals.

Question

Quizplus · Accepted Answer

Owners of a corporation are not personally liable for the firm's actions, though its directors may be. This is known as limited liability, which is a key advantage of the corporate form of business organization.

Which of the Following Statements About the Organization of Firms