Which of the Following Is Not True of a Corporation

question 114

Multiple Choice

Which of the following is not true of a corporation?

• A) It may buy own and sell property.
• B) It may sue and be sued.
• C) The acts of its owners bind the corporation.
• D) It may enter into binding legal contracts in its own name.

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Definitions:

Forecast Risk

The risk associated with the likelihood that the forecasted figures will not align with the actual results, also known as projection risk.

Accounting Break-even

The point at which total revenues equal total expenses, and the company neither makes a profit nor incurs a loss.

Operating Cash Flow

The cash that a business produces from its regular business activities, essential for maintaining daily operations, paying bills, and funding investments.

Depreciation Expense

A non-cash charge that reduces the value of fixed assets due to wear, tear, or obsolescence over time.