Which One of the Following Statements Is Correct Concerning Corporations

question 29

Multiple Choice

Which one of the following statements is correct concerning corporations?

• A) The largest firms are usually corporations.
• B) The majority of firms are corporations.
• C) The stockholders are usually the managers of a corporation.
• D) The ability of a corporation to raise capital is quite limited.
• E) The income of a corporation is taxed as personal income of the stockholders.

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Definitions:

Standard Oil

An American oil producing, transporting, refining, and marketing company. Established in 1870, it became the largest oil refiner in the world and was later divided due to antitrust laws.

Domestic Oil Market

The market that deals with the supply, demand, and pricing of oil within a country's borders.

Acquisitions

The act of acquiring control of another company by purchase or exchange of stock.

Greenmail

A situation where a company pays a premium to buy back its own shares from a corporate raider to prevent a hostile takeover.