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Questions and Answers
What is a key benefit of incorporation for shareholders?
What is a key benefit of incorporation for shareholders?
- Direct ownership of corporate assets
- Mandatory involvement in government filing
- Unlimited personal liability for the corporation's debts
- Limited personal liability for the corporation's debts (correct)
What is a requirement for the name of a corporation?
What is a requirement for the name of a corporation?
- Should not exceed three words
- Must be unique globally
- Should reflect the shareholders' names
- Must include the words 'limited', 'corporation', or 'incorporated' (correct)
Who owns the corporate assets in a corporation?
Who owns the corporate assets in a corporation?
- The corporation (correct)
- The government
- The shareholders individually
- The creditors
In a corporation, who do the corporate assets belong to?
In a corporation, who do the corporate assets belong to?
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What is a key benefit of incorporation for shareholders?
What is a key benefit of incorporation for shareholders?
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What is a requirement for the name of a corporation?
What is a requirement for the name of a corporation?
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Study Notes
Incorporation Benefits and Requirements
- A key benefit of incorporation for shareholders is limited liability, which means shareholders' personal assets are protected in case the corporation is sued or incurs debt.
Corporate Assets and Ownership
- In a corporation, the corporate assets belong to the corporation itself, not to the shareholders or owners.
Naming Requirements
- A requirement for the name of a corporation is that it must include a corporate designation such as "Corporation," "Incorporated," or "Ltd." to indicate that it is a corporation.
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