Which of the Following Is True of a Corporation

question 13

Multiple Choice

Which of the following is true of a corporation?

• A) It is the least dominant form of business organization.
• B) It can only be created by federal law.
• C) It is legally treated as a single person.
• D) It is legally owned by only one person.

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Definitions:

Negative Externality

A cost that affects a party who did not choose to incur it, often associated with the consumption or production of goods and services.

Price

The sum required, expected, or disbursed as a purchase price for an item.

Government-Provided Goods

Goods and services offered to the public by the government that might not be provided by the market or would be underprovided, such as public parks and national defense.

Explicit Fee

A clear and defined charge for a service or product that is not hidden or implicit.