Which of the following statements about corporations is NOT true?

The statement that corporations cannot issue stock is not true. In fact, one of the primary characteristics of a corporation is its ability to issue stock. This feature allows corporations to raise capital by selling shares to investors, who then become shareholders. These shareholders have an ownership interest in the corporation and may receive dividends based on their ownership percentage.

Additionally, the ability to issue stock contributes to the corporation's ability to limit the liability of its shareholders, as shareholders' financial responsibility is typically limited to the amount they have invested in the corporation. The concept of perpetual existence means that corporations can continue to exist independently of the ownership changes, even if shareholders buy and sell their stocks.

Regarding the limitation on shareholders, while closely held corporations may have restrictions on the transfer of shares or a limited number of shareholders, publicly traded corporations can have an unlimited number of shareholders, making them accessible to the general public. Thus, the ability of a corporation to issue stock plays a vital role in its structure and function.