
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

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