Corporate shareholders:

A. are proportionately liable for the firm's debts.

B. are protected from all losses.

C. have the ability to change the corporation's bylaws.

D. receive tax-free distributions since all profits are taxed at the corporate level.

E. have basically no control over the actual corporation.

Question

Business

Briley Williams

Yesterday, 19:59

Corporate shareholders:

A. are proportionately liable for the firm's debts.

B. are protected from all losses.

C. have the ability to change the corporation's bylaws.

D. receive tax-free distributions since all profits are taxed at the corporate level.

E. have basically no control over the actual corporation.

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Answers (1)

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Lana Lyons · Answer 1

C. have the ability to change the corporation's bylaws.

Explanation:

Shareholders of a corporation have limited liability which means that the liability of owners are limited to the amount invested in the business. Therefore, they aren't protected from all losses.

Distributions are taxed at the corporate and personal level.

Shareholders have some control over the corporation. They elect the directors who run the corporation. They have to approve of major decisions. They aren't involved in the daily running of the corporation.

Corporate shareholders have the ability to change the corporation's bylaws.