Which of the Following Statements Is CORRECT

question 25

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 its managers if the firm defaults on its debt.

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Definitions:

Iced Water

Water that has been chilled and often has ice cubes added to it, commonly consumed to cool down or refresh.

Rectal Temperatures

A method for measuring body temperature by inserting a thermometer into the rectum, providing a highly accurate reading.

Bacterial Infection

An invasion and multiplication of pathogenic bacteria in the body, leading to illness.

Oral Temperatures

Body temperature readings obtained orally (from the mouth), reflecting the core body temperature with a commonly used method for fever detection.