Which of the Following Statements Is CORRECT

question 39

Multiple Choice

Which of the following statements is CORRECT?

• A) The main method of transferring ownership interest in a corporation is by means of a hostile takeover.
• B) Two key advantages of the corporate form over other forms of business organization are unlimited liability and limited life.
• C) A corporation is a legal entity that is generally created by a state; its life and existence is separate from the lives of its individual owners and managers.
• D) Limited liability of its stockholders is an advantage of the corporate form of organization, but corporations have more trouble raising money in financial markets because of the complexity of this form of organization.
• E) Although its stockholders are insulated by limited legal liability, the corporation's legal status 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, even if the default is the result of poor economic conditions.

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Definitions:

Generations

Groups of people born and living around the same time, known for having shared experiences that shape their worldview.

Culturally Contingent

Something that depends on cultural context or varies according to different cultural practices and beliefs.

Leadership Behavior

The actions, practices, and attitudes exhibited by a leader to influence and guide a group towards achieving its goals.

Autocratic

Pertaining to a form or style of leadership that is directive and leader-centered, and in which power is exercised by a dominant and dictatorial individual.