A Business Is Most Likely to Be Characterized as a Corporation

question 139

Multiple Choice

A business is most likely to be characterized as a corporation if:

• A) it has two or more owners, with each owner liable for every other owner's actions.
• B) it has only one owner.
• C) it is legally treated as a person and owned by stockholders who are liable for the actions of the corporate "person" regardless of their investment.
• D) each owner is liable only to the extent of his or her own investment.

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Definitions:

Organizational Hierarchy

A system in which members of an organization are ranked according to levels of authority and responsibility.

Company Newsletter

A regularly distributed publication by a business to keep its employees, customers, or stakeholders informed about news and policy.

Informal Grapevine

An unofficial channel of communication within an organization, spreading information quickly but sometimes inaccurately through word-of-mouth.

Workspace Design

Workspace design involves arranging physical space and environment to improve efficiency, productivity, and well-being in the workplace.