Which of the following is an attribute of a conventional corporation?

• A. Corporation dissolves upon death of a shareholder
• B. Limited liability for shareholders
• C. Unlimited liability for owners
• D. Ownership is not transferable

Answer: (B)

Verified step by step guidance

1. Understand the concept of a conventional corporation: A conventional corporation is a legal entity that is separate from its owners (shareholders). It has specific attributes that distinguish it from other business structures.
2. Review the concept of limited liability: In a conventional corporation, shareholders have limited liability, meaning their financial risk is limited to the amount they invested in the corporation. They are not personally liable for the corporation's debts or obligations.
3. Analyze the attribute 'Corporation dissolves upon death of a shareholder': This is not true for a conventional corporation. Corporations are designed to have perpetual existence, meaning they do not dissolve upon the death of a shareholder.
4. Evaluate the attribute 'Unlimited liability for owners': This is incorrect for a conventional corporation. Shareholders have limited liability, not unlimited liability.
5. Consider the attribute 'Ownership is not transferable': This is also incorrect. In a conventional corporation, ownership is typically transferable, as shares can be bought and sold without affecting the corporation's existence.