Which of the Following Statements Is NOT True of a Corporation

question 71

Multiple Choice

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

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

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Definitions:

Massachusetts

Massachusetts is a state in the northeastern United States, known for its significant historical events, educational institutions, and being a leader in healthcare, technology, and innovation.

Public Financing

The provision of funds by the government to support the operations of public services or subsidies for private initiatives aimed at serving the public interest.

Anglican Church

The established state church of England, formed by Henry VIII after the Pope refused to annul his marriage to Catherine of Aragon.

Religious Sects

Subgroups within larger religious movements that hold distinct beliefs or practices differing from those of the main body.