Which of the Following Is Untrue Regarding Closely Held Corporations

question 69

Multiple Choice

Which of the following is untrue regarding closely held corporations?

• A) Most corporations in the U.S.are closely held.
• B) In most states,closely held corporations are subject to the general incorporation statute governing all corporations.
• C) Shareholders usually have little voice in the management and control of the business.
• D) Some states have enacted special legislation to accommodate the needs of closely held corporations.

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Definitions:

Direct Materials

Raw materials that are directly used in the production of a product and can be easily attributed to that product.

Direct Labor

The cost of workers who can be directly traced to the production of products.

Overhead Cost

Indirect expenses related to the day-to-day operations of a business, such as rent, utilities, and administrative salaries.

Work in Process Inventory

Goods that are in the process of being produced but are not yet finished products in manufacturing.