Which of the Following Is True of Corporations and Companies

question 35

Multiple Choice

Which of the following is true of corporations and companies being treated as separate legal entities?

• A) The owners are obligated to make all decisions on behalf of the company.
• B) The rights and benefits accruing to the company belong to its owners.
• C) The liability of the owners becomes limited to their investment in their company.
• D) The owners are obligated to pay the company's debts from their personal estates if necessary.

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Definitions:

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.

Self-regulation

The process by which individuals control their behavior, emotions, and thoughts towards achieving long-term goals.

Rainbow Preschool

A preschool that emphasizes inclusiveness and often incorporates educational content celebrating diversity.

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Households with income levels significantly below the national average, often facing financial stress and limited access to resources.