Which of the Following Is True About Corporations

question 60

Multiple Choice

Which of the following is true about corporations?

• A) A corporation's owners are not subject to double taxation.
• B) The professional executives who manage a corporation must own a significant portion of the company's stock.
• C) From a legal perspective, the firm and its owner are considered one and the same in a corporation.
• D) A corporation mixes attractive features of a sole proprietorship and a partnership.
• E) A corporation's owners do not directly receive profits or absorb losses.

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Definitions:

Financial Managers

Professionals responsible for the financial health of an organization, overseeing investment strategies, planning, and managing financial reports.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle.

Payables Financing

A form of short-term borrowing where a company finances its accounts payables through a third party.

Prompt Payment Discount

A discount offered to buyers for paying their invoices early, encouraging faster payments.