As a Legal Entity, a Corporation Can Perform the Following

question 24

Multiple Choice

As a legal entity, a corporation can perform the following functions EXCEPT:

• A)borrow money and lend money.
• B)borrow money, lend money, and sue and be sued.
• C)vote.
• D)borrow money, lend money, sue and be sued, and vote.

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Definitions:

Accumulated Depreciation

The cumulative amount of depreciation that has been charged to a fixed asset throughout its period of use.

Original Cost

The initial expenditure involved in acquiring an asset, including purchase price, transportation, and installation.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear.

Fixed Assets

Long-term tangible assets used in the operation of a business that are not expected to be converted into cash in the upcoming year.