Which Statement Is incorrect in Regards to the Characteristics of a Corporation

question 65

Multiple Choice

Which statement is incorrect in regards to the characteristics of a corporation?

• A)It is a separate legal entity.
• B)It can be sued.
• C)Shareholders liability is limited to their investment.
• D)It cannot be publicly accountable.

---

Definitions:

Access Corporation's Books

The right or ability to examine the financial records of a company.

Confidential Corporate Information

Confidential corporate information encompasses all non-public data, trade secrets, strategies, and details about a corporation's operations, financials, and plans that are protected to maintain competitiveness.

Best Interests

A principle prioritizing the most favorable outcome or welfare, especially in decisions affecting others, such as children or clients.

Shareholders

Individuals or entities that own shares in a corporation, thereby having partial ownership and possibly influencing the corporation's decisions.