Which of the Following Statements Best Describes a Corporation

question 16

Multiple Choice

Which of the following statements best describes a corporation?

• A)can be single or multiple owners
• B)taxed separately
• C)most expensive to establish
• D)all of the above

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.

Stock Dividend

A distribution of a corporation's earnings to its shareholders in the form of additional shares rather than cash.

Uncollectible Receivable

A receivable that is deemed irrecoverable and is written off as a loss because the debtor is unable to fulfill their obligation.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its short-term assets.