Which of the Following Is an Incorrect Statement About a Corporation

question 105

Multiple Choice

Which of the following is an incorrect statement about a corporation?

• A) A corporation is an entity separate and distinct from its owners.
• B) Creditors ordinarily have recourse only to corporate assets in satisfaction of their claims.
• C) A corporation may be formed in writing, orally, or implied.
• D) A corporation is subject to numerous government regulations.

---

Definitions:

Assembly Department

A section in a manufacturing facility where components are assembled into final products.

Direct Labor-Hours

The total hours worked by employees directly involved in manufacturing a product or providing a service, often used to allocate manufacturing overhead.

Machine-Hours

A measure of production activity that quantifies the total hours a machine is operated within a given period.

Forming Department

A division within a manufacturing process where raw materials are shaped into finished products or components.