Under the Corporate Form of Business Organization

question 33

Multiple Choice

Under the corporate form of business organization

• A) a shareholder is personally liable for the debts of the corporation.
• B) shareholders' acts can bind the corporation even though the shareholders have not been appointed as agents of the corporation.
• C) the corporation's life is stipulated in its charter.
• D) shareholders wishing to sell their corporation shares must get the approval of other shareholders.

---

Definitions:

Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues within a given fiscal period, leading to borrowing or debt accumulation.

Economic Crises

Periods of significant decline in economic activity spread across the economy, lasting more than a few months, and are normally visible in real GDP, real income, employment, industrial production.

Environmental-protection Legislation

Laws and regulations enacted by governments to regulate activities that cause environmental degradation, and to protect natural resources and ecosystems.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and other liquid assets.