Which of the Following Statements About the Operation of a Corporation

question 30

Multiple Choice

Which of the following statements about the operation of a corporation is correct?

• A)A corporation is a separate entity and is legally formed under state laws.
• B)A corporation automatically expires in 99 years and must be renewed if a corporation wants to remain in business.
• C)Owners of a corporation have unlimited liability for any claims against their company.
• D)A corporation tends to be much easier to set up than a sole proprietorship or partnership.

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Definitions:

Embryonic Stage

A critical phase in development that occurs from the second to the eighth week after fertilization during which major organs and structures within the body begin to form.

Major Organs

Essential organs within an organism that perform critical functions necessary for life, such as the heart, brain, lungs, liver, and kidneys.

Age Of Viability

The stage of fetal development at which the fetus has the capability to survive outside the uterus with medical support, typically around 24 weeks of gestation.

Prematurely

Occurring or done before the usual or proper time; too early.