A characteristic of the corporate form of ownership is limited liability which means thatMultiple Choiceowners are only liable for the amount they invest in the business.owners are liable in proportion to the total number of owners in the business.owners are only liable for debts that the corporation cannot cover.liability is limited to the decision makers of the corporation.liability for the corporation's debts decreases over time.

Which of the statements is incorrect?Group of answer choicesStockholders are liable only to the extent of their investment as represented by the shares subscribed by them.A corporation is created by law or by operation of law.A stockholder has the right to transfer his shares without prior consent of the other stockholders.A stockholder is liable personally for corporate debts to third persons.

In which business structure is the owner personally liable for business debts and obligations?1 puntoA) CorporationB) Limited Liability Company (LLC)C) PartnershipD) Sole Proprietorship

Limited liability is a benefit for the owners of: Group of answer choicessole proprietorships and partnershipspartnershipscompanies/corporationsole proprietorships

How does the concept of limited liability apply to shareholders?Multiple choice question.Shareholders' liability is limited to losses not covered by the federal government.Shareholders' liability is limited to the total intangible assets of the corporation.Shareholders can be held personally liable for the debts of the corporation.Shareholders cannot be held personally liable for the debts of the corporation.

Problem with individual liability is/are:Group of answer choicesThe individual may hold a high-level position and his conviction can affect the entire company.It's difficult to identify responsible person within corporate structure.Business decisions are usually collective action of numerous corporate employees.All of these.