Which amongst the following is NOT a feature of a corporation? Select one: a. A company is separate from its owners (shareholders) and its managers (its CEO and directors, etc). b. The property of the company belongs to the owners of the company. c. A company can sue and be sued in its own name. d. A company’s obligations (debts) are its own, and are not debts owed by its agents or its owners (its shareholders).
Question
Which amongst the following is NOT a feature of a corporation?
Select one:
a. A company is separate from its owners (shareholders) and its managers (its CEO and directors, etc).
b. The property of the company belongs to the owners of the company.
c. A company can sue and be sued in its own name.
d. A company’s obligations (debts) are its own, and are not debts owed by its agents or its owners (its shareholders).
Solution
The correct answer is:
b. The property of the company belongs to the owners of the company.
This statement is not a feature of a corporation. In a corporation, the property and assets are owned by the corporation itself, not the shareholders. The shareholders own shares in the corporation, which represent a claim on a portion of the corporation's assets and earnings, not the assets themselves.
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