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Which of these features could accurately be included in the definition of a corporation? Select all...

Which of these features could accurately be included in the definition of a corporation? Select all that apply.

Separate legal entity

Division of ownership and control

Double taxation

Limited access to capital

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Answer #1

A corporation is considered to be a separate legal entity that is distinct from its owners. If a corporate distributes off of its earnings as dividend, it will have to pay taxes before distribution and the shareholders will also pay taxes on dividend. This way it is subject to double taxation. The management and ownership in a corporation is in different hands. Therefore, the following features can be accurately included in the definition of a corporation-

Separate legal entity

Division of ownership and control

Double taxation

Do let me know in the comment section in case of any doubt.

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