Which of the Following Is a True Statement Concerning Corporations

question 131

Multiple Choice

Which of the following is a true statement concerning corporations?

• A) The equity that can be raised by the corporation is limited to the current shareholders' personal wealth.
• B) The life of the corporation is unlimited.
• C) The corporation has limited liability for business debts.
• D) When dividends are paid, corporate profits are taxed once.
• E) It is difficult to transfer ownership of corporate shares.

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy, indicating the purchasing power of the currency and the inflation rate.

Unemployment

The situation where individuals who are capable of working and are seeking work are unable to find employment.

Classical Notion

An economic theory advocating for free markets, competition, and minimal government intervention in the economy.

Monetary Neutrality

The proposition that changes in the money supply do not affect real variables.