Which of the following is true with regard to the characteristics of corporations?

Question

Quizplus · Accepted Answer

The characteristic of limited liability is one of the key features of corporations. It means that the liability of shareholders is limited to the amount they have invested in the corporation through purchasing shares. They are not personally liable for the debts or other obligations of the corporation beyond that amount. The other options are incorrect: A is false because corporations can sue and be sued; B is false because shareholders are not personally liable for the corporation's debts; C is false because directors are responsible for managing the corporation and acting in its best interests, not directly responsible to shareholders; and E is false because shareholders are not vicariously liable for the actions of employees in the corporation.

Which of the Following Is True with Regard to the Characteristics