Which of the following is true of a corporation?

Question

Quizplus · Accepted Answer

The earnings of a corporation may be subject to double taxation, meaning that the profits of the corporation are taxed as income at the corporate level, and if distributed as dividends, may be taxed again as income at the individual level. The other choices are incorrect. A corporation can be privately held, and many are. A corporation can have a potentially unlimited life, depending on its structure and legal status. Stockholders of a corporation generally have limited liability, meaning they are only accountable for the debts of the corporation up to the amount of their investment.

Which of the Following Is True of a Corporation