Asked by Chantal Taylor on Jul 24, 2024
Verified
All of the following are characteristics of C Corporations except:
A) unlimited life.
B) limited liability for the stockholders.
C) avoidance of double taxation.
D) ease of raising additional capital for expansion.
C Corporations
A legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity.
Unlimited Life
Refers to corporations or legal entities that continue to exist indefinitely until dissolution, unlike natural persons who have a finite lifespan.
Double Taxation
The imposition of taxes on the same income, asset, or financial transaction at two different levels of government.
- Gain insight into the primary concepts and vocabulary relevant to financial markets and securities.
- Acquire knowledge on the techniques firms utilize for financing asset acquisitions.
Verified Answer
ST
Shawntina Trotter-DanielJul 24, 2024
Final Answer :
C
Explanation :
C Corporations are subject to double taxation, which means that the corporation is taxed on its profits, and then the dividends paid to stockholders are taxed again. Therefore, the avoidance of double taxation is not a characteristic of C Corporations. The other options listed are indeed characteristics of C Corporations.
Learning Objectives
- Gain insight into the primary concepts and vocabulary relevant to financial markets and securities.
- Acquire knowledge on the techniques firms utilize for financing asset acquisitions.