Which of the Following Is an Incorrect Statement About a Corporation

question 28

Multiple Choice

Which of the following is an incorrect statement about a corporation?

• A) A corporation is an entity separate and distinct from its owners.
• B) Creditors ordinarily have recourse only to corporate assets in satisfaction of their claims.
• C) A corporation may be formed in writing orally or implied.
• D) A corporation is subject to numerous state and federal regulations.

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Definitions:

Financial Planning

The process of creating strategies for managing financial affairs, including budgeting, investing, and retirement preparation, to achieve one’s financial goals.

Cash Management

The process of collecting, managing, and investing a company's cash in a way that maximizes the efficiency of its operations and reduces the risk of financial distress.

Corporate Treasurer

An executive responsible for managing an organization's investments, capital structure, and financial strategies.

Credit Management

The practice of granting credit, recovering this credit when it's due, and ensuring compliance with company credit policy.