Detailed Answer
(c) One advantage of the corporate form of business is
that it has a continuous life and is not terminated by the death of
a shareholder or manager. Answer (a) is incorrect because although
the power to manage the corporation is vested in the
board of directors, they usually delegate the day-to-day management
responsibilities to various managers. Answer (b) is incorrect
because in most corporations, ownership is not contractually
restricted. In fact, free transferability of the shares of stock is a
major advantage of the corporate form of business. Answer (d) is
incorrect because corporations are not free from state regulation.