Which of the following statements is false?
A)Corporations are business organizations created under federal law.
B)One of the most notable characteristics of a corporation is the limited liability of the owners.
C)An advantage of corporations over other business entities is the ease of transfer of ownership.
D)The laws governing corporations vary from state to state.
E)Individuals can sell stock to each other without corporate involvement.

Question

Quizplus · Accepted Answer

Corporations are primarily created under state law, not federal law. Each state has its own set of laws governing the formation, operation, and dissolution of corporations. Federal law may regulate certain aspects of corporate operations, especially for publicly traded companies, but the actual creation of a corporation is a matter of state law.

Which of the Following Statements Is False