Which of the Following Is a Characteristic of a Corporation

question 350

Multiple Choice

Which of the following is a characteristic of a corporation but not of a small family-owned business?

• A)The corporation buys inputs in markets for the factors of production.
• B)The corporation sells output in markets for goods and services.
• C)The corporation is guided in its decisions by the objective of profit maximization.
• D)The corporation faces a principal-agent problem created by the separation of ownership and control.

---

Definitions:

Principal Gift

a significant financial donation made to a non-profit organization, often a transformational contribution that can have a substantial impact on the organization's capabilities and future.

Private Individuals

Persons acting in their own interest or on their own account, rather than representing an organization or governmental body.

Gift-In-Kind

A type of donation other than cash, such as goods, services, or time, provided to a nonprofit organization.

Advancement Officer

A professional responsible for developing strategies to secure resources, usually through fundraising and donations, to further an organization's mission.