Of the following statements, which are true for the corporate form of organization? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Directors oversee its business affairs. unchecked Ownership is usually transferred readily. unchecked Stockholders do not have the power to bind the corporation to contracts. unchecked It has a continuous life. unchecked Generally there is no double taxation on corporate income that is distributed to owners. unchecked It is not a separate legal entity from its owners. unchecked Owners are liable for debt and the acts of the corporation.

Statements are:

Ownership is usually transferred readily. = False as it is generally permanent. Stockholders do not have the power to bind the corporation to contracts. = True as this power for daily business lies with directors. It has a continuous life. = True as said people may come people may go but a company goes on forever. Generally there is no double taxation on corporate income that is distributed to owners. = False as income in hands of shareholders is taxed twice generally. It is not a separate legal entity from its owners. = False as the owners are always different then that of entity they posses a separate legal identity. Owners are liable for debt and the acts of the corporation. = False as the owners of corporation has limited liability they are not completely responsible for debts and acts of company there is separate legal identity.