Question 5

Of the following statements, which are true for the corporate form of organization?

Owners have limited liability for corporate debts

Directors oversee its business affairs Stockholders do not have the power to bind the corporation to contracts

Transfer of ownership rights among owners generally does not impact equity

Compared to other forms of organization-capital (financing) is more difficult to accumulate

Generally there not double taxation on corporate income that is distributed to owners

Owners are agents of the corporation