Which of the Following Statements Is Not True Concerning a Corporation

question 12

Multiple Choice

Which of the following statements is not true concerning a corporation:

• A) A corporation always has limited liability; the main advantage of a corporation.
• B) Owners of the corporation and the company itself may be sued if business practices harm the environment.
• C) Some are subject to double taxation.
• D) Professional Corporations are subject to legal actions filed against them as individuals.
• E) Corporations are legal entities apart from their owners that may engage in business, make contracts, own property, pay taxes, and sue and are sued by others.

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Definitions:

Closed-ended Question

A type of question that typically can be answered with "yes" or "no" or within a limited set of options.

Hypothetical Question

A question based on assumptions rather than facts, often used to explore possibilities or legal implications in various scenarios.

Open-ended Question

A type of question that allows for a free-form response, encouraging detailed answers rather than a simple yes or no.

Closed-ended Question

A type of question formulated in a way that limits the answers to specific choices, such as yes or no, or a multiple-choice format.