A Business Organized as a Corporation

question 181

Multiple Choice

A business organized as a corporation

• A) is not a separate legal entity in most countries.
• B) requires that shareholders be personally liable for the debts of the business.
• C) is owned by its shareholders.
• D) terminates when one of its original shareholders dies.

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Definitions:

Pure Competition

A market structure characterized by many sellers offering identical products, where no single seller has any influence over market price or conditions.

Monopoly Market

A market structure characterized by a single seller dominating the entire market, with no close substitutes for the product or service offered.