Which of the Following Is a Major Reason Why Corporate

question 171

Multiple Choice

Which of the following is a major reason why corporate ownership is popular in the United States?

• A)Stockholders have limited liability for the debts of the corporation.
• B)Most corporations are small- or medium-sized.
• C)The life of a corporation is limited by the death of the owner.
• D)A corporation is usually managed by the owners.

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Definitions:

Value

The importance, worth, or usefulness of something.

Instrument

An instrument in legal and financial contexts refers to a formal document that records a legal right, obligation, or transaction, such as a contract, will, promissory note, or security.

Obligations

Duties or responsibilities enforced by law, contract, or social norms that one party owes to another.

Secondary Parties

Individuals or entities that are indirectly involved in an agreement, transaction, or process, differing from the primary parties who are directly engaged.