Question

All of the following are characteristics of corporations except: Entity life will continue in the event...

All of the following are characteristics of corporations except:

Entity life will continue in the event of a withdrawal by an owner

Double taxation

Owners can easily access capital

Owners report their share of the entity’s earnings on their personal tax returns

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Answer #1

All of the following are characteristics of corporations except:

Owners report their share of the entity’s earnings on their personal tax returns.

Explanation -

Corporation has the following characteristics-

Separate legal entity and existence

Limited liability

Continue life

Double taxation

So in the given case, corporation has the characteristics i.e. entity life will continue in the event of a withdrawal by a owner, double taxation and owner can easily access capital. But Owners report their share of the entity’s earnings on their personal tax returns.

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