Which statement is true about a corporation’s ownership transfer?

Which statement is true about a corporation’s ownership transfer?

• A. Ease of transfer of ownership
• B. Difficult transfer with long process
• C. Ownership is permanently fixed
• D. Transfer requires dissolution

Answer: (A)

Ownership in a corporation is represented by shares that can be bought and sold, so ownership can pass from one person to another without dissolving the company. This makes transferring ownership generally easy, because the corporation continues to exist regardless of who owns the stock. While some private or closely held corporations may impose transfer restrictions, the standard idea is that ownership transfer is straightforward and does not require dissolution.

Ownership in a corporation is represented by shares that can be bought and sold, so ownership can pass from one person to another without dissolving the company. This makes transferring ownership generally easy, because the corporation continues to exist regardless of who owns the stock. While some private or closely held corporations may impose transfer restrictions, the standard idea is that ownership transfer is straightforward and does not require dissolution.