Which of the Following Statements Is NOT True of a Corporation

question 64

Multiple Choice

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

• A)It can incur debt that is an obligation of the corporation but not of its individual owners.
• B)It is an entity separate from the individuals who own it.
• C)It is legally obliged to distribute all profits to shareholders.
• D)It can enter into contracts.
• E)It has the right to sue and be sued.

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Definitions:

Perceived Ability

How individuals believe in their competence or skills in particular areas, which may or may not accurately reflect their actual ability.

Organizational Trust Model

A conceptual framework used to understand and measure the level of trust within organizations, often highlighting the importance of trust in facilitating cooperation, commitment, and effective communication.

Compassion

A feeling of deep sympathy and sorrow for another who is struck by misfortune, accompanied by a desire to alleviate the suffering.

Quality Circles

Small groups of employees who voluntarily meet regularly to identify, analyze, and solve work-related problems, aiming to improve organizational performance.