Which of the following are characteristics of a C corporation?

1

Income and losses are passed through to the shareholders

2

The number of permitted shareholders is limited

3

Allows for limited liability of the shareholders

4

Capital is limited to the shareholders resources

5

Entity has an indefinite life

a)

1 and 2

b)

1 and 4

c)

2 and 3

d)

2 and 4

e)

3 and 5