A Business Organized as a Corporation

question 31

Multiple Choice

A business organized as a corporation:

• A)is not a separate legal entity in most provinces.
• B)requires that shareholders be personally liable for the debts of the business.
• C)is owned by its shareholders.
• D)has income tax disadvantages over a proprietorship or partnership.

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Definitions:

Domestic Firm

A company that operates within the borders of its home country, as opposed to internationally.

Overseas Markets

Foreign sectors where goods, services, and investments cross national borders for trade.

Multidomestic Corporations

Companies that operate in multiple countries, adapting their products and practices to each local market.

Independent Companies

Businesses that operate on their own, without being controlled by or affiliated with a larger conglomerate or parent company.