Which of the Following Is NOT True

question 1

Multiple Choice

Which of the following is NOT true?

• A) A corporation cannot enter into a contract.
• B) A corporation is a legal fiction.
• C) A corporation is a creature of law.
• D) A corporation has no physical existence.
• E) A corporation has the same attributes as a natural person.

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Definitions:

Dual Approach

In economics, a methodology or analysis technique that involves examining problems from both sides or using two complementary perspectives or sets of tools.

Indifference Curve

A curve representing all combinations of goods and services among which a consumer is indifferent, showing the same level of satisfaction or utility.

Budget Line

A graphical representation of all possible combinations of two goods or services that can be purchased with a given income and prices, identical to the concept of a budget constraint but rephrased.

Duality

Alternative way of looking at the consumer’s utility maximization decision: Rather than choosing the highest indifference curve, given a budget constraint, the consumer chooses the lowest budget line that touches a given indifference curve.