Which of the following characteristics distinguish a corporation from other forms of businesses?I.Centralization of managementII.Continuity of lifeIII. Free transferability of ownership interestsIV.Limited liabilityV.Profit motiveOa. Statements I, II, IV, and V are correct.Ob. Statements IV and V are correct.Oc. Statements I, II, III, and IV are correct.,Od. All are distinguishing characteristics.Oe. Only statement III is correct.

Option C is the correct answer : Statement I,II,III and IV detailed explained below:

Answered: Centralization of managemen Continuity…

Business

Accounting

Centralization of managemen Continuity of life Free transferability of owners Limited liability

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 12P

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

Which of the following characteristics distinguish a corporation from other forms of businesses?
I.
Centralization of management
II.
Continuity of life
III. Free transferability of ownership interests
IV.
Limited liability
V.
Profit motive
Oa. Statements I, II, IV, and V are correct.
Ob. Statements IV and V are correct.
Oc. Statements I, II, III, and IV are correct.,
Od. All are distinguishing characteristics.
Oe. Only statement III is correct.

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