Question

question 2
5 points
which of the following set of characteristics describes a corporation?
a owners are personally liable for all debts and obligations.
b easy to transfer ownership and enjoys an unlimited life.
c small amount of capital is needed to start the business.
d no legal distinction between the business as an economic unit and the owners.

Explanation:

A corporation is a legal entity separate from its owners. Owners have limited liability, it has an unlimited life, and ownership can be easily transferred through stocks. Option A is wrong as owners have limited liability. Starting a corporation usually requires significant capital, so C is incorrect. A corporation is a distinct legal entity from its owners, so D is wrong.

Answer:

B. Easy to transfer ownership and enjoys an unlimited life.