Concept Introduction:
The Corporate form of organization:
There are several forms of business organizations like proprietorship,
Characteristic of a corporation are as follows:
- Separate legal entity: The Corporate form of business has its own legal identity and owners are personally liable for the debt of the corporation.
- Easy availability of funds: As compared with other business form, a corporate form of business can easily raise find by making public issues of its shares.
- Separate taxability: The Corporate form of business has its own legal identity and hence it is separately taxed. Hence owners are not liable for the tax liability of the company.
- Limited liability of shareholders: Shareholders or owners of the company have limited liability. They are not personally liable for the debts of the company.
- Easy transfer of ownership: In the case of a company the ownership is transferred only by the transferring the shares of the company.
To identify:
The true statements about Characteristic of a corporate form of organization

Explanation of Solution
The true statements about Characteristic of a corporate form of organization are following:
1. Ownership rights cannot be easily transferred.
4. Corporate income that is usually taxed twice.
5. It is a separate legal entity.
7. Owners are not agents of the corporation
Following other statements are false for the corporate form of organization:
2. Owners have unlimited liability for corporate debts.
3. Capital is more easily accumulated than with most other forms of organization
6. It has a limited life.
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Chapter 13 Solutions
FUNDAMENTAL ACCT PRIN CONNECT ACCESS
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