Which statement concerning corporations is correct?
A)There are time limits placed on the transfer of ownership.
B)The ability to raise capital is limited to that of a general partnership.
C)Primary shareholders have unlimited liability for corporate debts.
D)The entity can outlive all of its initial owners.
E)When the last original owner dies or withdraws,the entity is terminated.

Question

Quizplus · Accepted Answer

A corporation is a separate legal entity that can continue to exist even after its initial owners have sold their shares or passed away. This is known as perpetual existence. It is one of the key advantages of incorporating a business, as it provides for continuity and stability.

Which Statement Concerning Corporations Is Correct