9 A foreign corporation is a corporation doing business in other states. True False QUESTION 10 Shareholders in an "S Corporation" are still subject to the double-taxation problem facing all corporations. True False QUESTION 11 All corporations must file a charter, also called Articles of Incorporation in some states. True False QUESTION 12 One reason a business owner may choose a partnership over a limited liability company is that partnerships have a more favorable tax status than an LLC. True False QUESTION 13 One advantage of a corporation is that shareholders have limited liability, meaning generally they are not liable for the debts of the company beyond their investment. True False QUESTION 14 One advantage of a partnership is that it is easy for one partner to transfer his ownership in the partnership to new owners, just as in a corporation. True False QUESTION 15 Unless the parties agree to a novation, a promoter of a corporation remains personally liable on contracts he signs before the corporation is formed. True False QUESTION 16 A foreign corporation is a corporation doing business in other states. True False