All of the following are characteristics of S Corporations except:
A) unlimited life.
B) unlimited liability for the stockholders.
C) avoidance of double taxation.
D) ease of raising additional capital for expansion.

Question

Quizplus · Accepted Answer

S Corporations provide limited liability for their stockholders, meaning their personal assets are protected from the corporation's debts and obligations. Therefore, option B stating that S Corporations have unlimited liability for stockholders is incorrect. Instead, S Corporations have all other options listed, including unlimited life, avoidance of double taxation, and ease of raising additional capital for expansion.

All of the Following Are Characteristics of S Corporations Except