A Corporation Differs from Other Forms of Businesses Because It

question 148

Multiple Choice

A corporation differs from other forms of businesses because it

• A)is required to own a seat on a stock exchange.
• B)has a lower debt ratio.
• C)has no tax liability.
• D)is characterized by limited profits.
• E)is owned by people who enjoy limited liability.

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Definitions:

Meeting

A gathering of individuals or representatives for the purpose of discussing and acting upon matters of common interest.

Incorporators

Individuals who sign the articles of incorporation for a corporation, effectively bringing it into existence under the law.

Corporate Articles

Legal documents filed with a state government to formally establish the existence of a corporation.

Incorporation

The process of legally declaring a corporate entity as separate from its owners.