Which of the Following Statements About the Operation of a Corporation

question 27

Multiple Choice

Which of the following statements about the operation of a corporation is correct?

• A)A corporate charter automatically expires in 99 years and must be renewed if the corporation wants to remain in business.
• B)Owners of a corporation have unlimited liability for any claims against their company.
• C)A corporation tends to be much easier to set up than a sole proprietorship or partnership.
• D)A corporation receives its charter from the federal or a provincial government.

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Definitions:

Health Care

The maintenance or improvement of health via the prevention, diagnosis, treatment, recovery, or cure of disease, illness, injury, and other physical or mental impairments in people.

Labor-intensive Business

A business that requires a high level of manual labor input compared to capital investment, typically characterized by a significant proportion of operational costs being attributed to human labor.

Capital-intensive Business

A type of business that requires significant investment in capital assets like machinery and equipment, often associated with manufacturing industries.

Service-intensive Business

A type of enterprise that primarily offers services rather than goods, requiring a high level of customer interaction and support.