Which of the Following Statements Is CORRECT

question 40

Multiple Choice

Which of the following statements is CORRECT?

• A) A hostile takeover is the main method of transferring ownership interest in a corporation.
• B) A corporation is a legal entity created by a state,and it has a life and existence that is separate from the lives and existence of its owners and managers.
• C) Unlimited liability and limited life are two key advantages of the corporate form over other forms of business organization.
• D) Limited liability is an advantage of the corporate form of organization to its owners (stockholders),but corporations have more trouble raising money in financial markets because of the complexity of this form of organization.
• E) Although the stockholders of the corporation are insulated by limited legal liability,the legal status of the corporation does not protect the firm's managers in the same way,i.e. ,bondholders can sue the firm's managers if the firm defaults on its debt.

Understand the role and impact of lay testimony and firsthand experiences in speeches.

Grasp the principles of organizing speeches, including spatial and chronological organization.

Recognize the importance of preparation and practice in delivering effective presentations.

Understand the significance of demographic information in tailoring speeches to target audiences.

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Definitions:

Issue Costs

Expenses associated with the issuing of new securities, including underwriting, legal, and registration fees.

Seasoned Issues

Securities that have been publicly traded for a period of time, demonstrating stability and performance history to investors.

IPOs

Initial Public Offerings, the process by which a private company offers shares to the public for the first time.

Issuing Securities

The process by which a corporate entity raises capital by distributing new stocks, bonds, or other financial instruments to investors.