Which two sentences describe the characteristics of a corporation? The company is treated as a separate tax entity by law. The owners have to accept partial liability for debts. It is possible to raise large amounts of capital by selling company stock. The owners are known as shareholders.
Added by Melissa J.
Step 1
"The company is treated as a separate tax entity by law." This sentence describes a characteristic of a corporation. In a corporation, the company is considered a separate legal entity from its owners, meaning it has its own rights, privileges, and liabilities Show more…
Show all steps
Your feedback will help us improve your experience
Andrew Davis and 56 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Which of the following statements is the most accurate? Sole proprietorships are well suited for people who want to own a business and share in its profits without taking an active role in management. Sole proprietorships are the least risky form of business ownership. Sole proprietorships must receive a state charter before they can legally conduct business. Sole proprietorships are taxed at the owner's personal tax rate.
Azat N.
What's one advantage to the corporate form of ownership? A. Expensive to start up B. Unlimited liability C. Ability to raise large amounts of money through the sale of stock D. Double taxation
Jennifer S.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD