Which Statement About Corporations Is FALSE

question 24

Multiple Choice

Which statement about corporations is FALSE?

• A) A corporation could fail without ruining its directors and stockholders.
• B) The corporation was not a vital component in the new market economy.
• C) A corporation enjoyed special privileges and powers granted in a charter from the government.
• D) Corporations were able to raise far more capital than the traditional forms of enterprise.
• E) Many Americans distrusted corporate charters as a form of government granted special privilege.

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Definitions:

Craft Union

A labor organization representing workers who practice the same craft or trade, aiming to negotiate better wages, conditions, and rights for its members.

Arbitrator

A neutral third party who resolves disputes between two or more parties outside of the court system, usually in a binding decision.

Mediator

A neutral third party who assists in negotiating and reaching a settlement in a dispute or negotiation.

Collective Bargaining

A process of negotiations between employers and a group of employees aimed at reaching agreements to regulate working conditions.