The Exciting World of Stock Market: Let's Talk about Corporations and Ownership

What related benefit of a corporation will Yala discover when she decides to sell her Honeywell stock?

A. avoiding double taxation

B. limited ease of transfer

C. ownership

D. specialized perpetual life

Answer:

A related benefit of a corporation when Yala decides to sell her Honeywell stock is ownership.

When Yala decides that she no longer wants her Honeywell stock, she will discover that a related benefit of a corporation is ownership. Owning stock in a corporation gives individuals the right to participate in the decision-making process of the company and to receive dividends based on the profits of the corporation.

Corporations offer shareholders a sense of ownership and control in the company, allowing them to have a say in important matters through voting rights in shareholder meetings. This ownership aspect provides individuals with a stake in the company's success and future growth.

Furthermore, as owners of stock in a corporation, individuals can benefit from potential capital appreciation if the company performs well and the stock price increases. This can lead to higher returns on investment for shareholders, making ownership in a corporation a valuable asset.

Overall, the concept of ownership in a corporation offers individuals like Yala the opportunity to be part of a larger business entity, contribute to its success, and potentially reap financial rewards through dividends and stock value appreciation.