Under the corporate form of business organization,

A) ownership rights are easily transferred
B) a stockholder is personally liable for the debts of the corporation
C) corporations are not subject to the Sarbanes-Oxley Act
D) stockholders wishing to sell their corporate shares must get the approval of other stockholders

Question

Pierce Williams · Accepted Answer

Final Answer : A, Explanation :  One of the advantages of the corporate form of business organization is that ownership rights can be easily transferred through the buying and selling of stock. Option B is incorrect because the main advantage of a corporation is that shareholders are not personally liable for the debts of the corporation. Option C is incorrect as all publicly traded companies are subject to the Sarbanes-Oxley Act in the United States. Option D is incorrect as stockholders are free to sell their shares without approval from other stockholders, although large sales by insiders may require disclosure to the Securities and Exchange Commission.

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