A Corporation Is an Entity _____

question 43

Multiple Choice

A corporation is an entity _____.

• A) that is organized according to state or federal statutes and in which ownership is divided into shares of stock
• B) that is known for its ease of formation
• C) that terminates its existence with the death of the owner
• D) that pays tax on the owner's tax returns

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Definitions:

Cash Received

Funds that are taken in by a business, representing inflow from sales, investments, financing, and other sources.

Notes Receivable

Written promises for amounts to be received, typically noting interest, by a debtor in favor of the creditor.

Cash (Net) Realizable Value

The net amount a company expects to receive in cash.

Maturity Value

The amount payable to an investor at the end of a debt instrument's holding period or maturity.