Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

12. Stockholders' Equity

Characteristics of a Corporation

Financial Accounting

12. Stockholders' Equity

Characteristics of a Corporation

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Multiple Choice

Since management and ownership are separated, a corporation's life is unlimited. Which term best completes the blank in the sentence above?

management

liabilities

revenues

dividends

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Verified step by step guidance

Understand the context of the question: The sentence discusses the separation of management and ownership in a corporation, which leads to the corporation having an unlimited life. This is a key characteristic of corporations.

Review the provided options: 'management,' 'liabilities,' 'revenues,' and 'dividends.' Consider which term logically fits the blank in the sentence based on the concept of corporate structure and characteristics.

Analyze the term 'management': This term refers to the group of individuals responsible for running the corporation. It is mentioned in the sentence as being separate from ownership, which is a defining feature of corporations.

Evaluate the other options: 'Liabilities' refer to debts or obligations, 'revenues' refer to income generated from operations, and 'dividends' refer to distributions of profits to shareholders. None of these terms directly relate to the separation of management and ownership or the unlimited life of a corporation.

Conclude that the term 'management' best completes the blank, as it aligns with the concept of separation between management and ownership, which contributes to the corporation's unlimited life.