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:

Babbage's Engine

Refers to Charles Babbage's Difference Engine and Analytical Engine, early mechanical computers designed in the 19th century.

Vacuum Tubes

Electronic devices that control the flow of electrons through a vacuum, used in early radios, televisions, and computers before the advent of semiconductor devices.

Integrated Circuits

Integrated circuits are microchips that consist of a set of electronic circuits on a small flat piece (or "chip") of semiconductor material, typically silicon, functioning as the core component in a variety of electronic devices.

Transistors

Semiconductor devices used to amplify or switch electronic signals and electrical power, fundamental components of modern electronic devices.