Which of the following is not a characteristic of a corporation?
The various options for the question “Which of the following is not characteristic of a corporation?” are as below:
A. The financial loss that a stockholder may suffer from owning stock in a public company is limited.
B. Cash dividends paid by a corporation are deductible as expenses by the corporation.
C. A corporation can own property in its name.
D. Corporations are required to file federal income tax returns.
The correct answer to this question is an option (B) Cash dividends paid by a corporation are deductible as expenses by the corporation.
The corporation is a legal form that enables businesses and organizations to operate as separate entities. Corporations are created by filing a corporate charter with the state in which they operate. The charter sets out the organization’s objectives, powers, and duties. The corporation can be either for profit or non-profit purposes. Corporations can also be owned by individual shareholders or by the government.
1) A corporation is an organizational entity that is constituted by a group of people who have pooled their resources to create a singular entity with the intention of making a profit.
2) A corporation is typically formed under the laws of a particular country, and is subject to the jurisdiction of the government in which it was created.
3) Corporations are registered with the government, and are subject to specific tax rules and regulations.
Corporations are required to file federal income tax returns. The Internal Revenue Service (IRS) audits these returns to ensure that the corporation is paying its fair share of taxes. If the IRS finds that the corporation is not paying its fair share, it may impose a fine or pursue other legal remedies.A corporation can own property in its name. This includes things such as land, buildings, and even natural resources. The corporation can also use the property to generate revenue and make money.
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