Which of the Following Statements Is Not True of a Corporation

question 27

Multiple Choice

Which of the following statements is not true of a corporation?

• A)A corporation is taxed as a separate legal entity.
• B)A corporation has easy transferability of ownership.
• C)A corporation may have the ability to raise large amounts of capital.
• D)A corporation's owners have unlimited liability.

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Definitions:

Product-Level Activity

Activities that are directly associated with a specific product, leading to costs that can be directly attributed to the production of that product.

Facility-Level Activity

Activities that support the entire organization and cannot be traced to individual products or services, such as building security and property taxes.

Activity Rate

The cost driver rate used in activity-based costing to allocate overhead costs to products or services based on specific activities.

Supporting Customers

Activities or services provided by a company to assist its customers in using its products or services effectively.