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:

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its operational liquidity.

Operating Cash Flows

The cash generated from the normal operations of a business, excluding cash movements from investing and financing activities.

Depreciated

Refers to the decrease in value of an asset over time due to wear and tear, age, or obsolescence.

Salvaged

The recovery of value from an asset that has been damaged, discarded, or no longer useful in its original form.