Which Statement About Corporations Is FALSE

question 24

Multiple Choice

Which statement about corporations is FALSE?

• A) A corporation could fail without ruining its directors and stockholders.
• B) The corporation was not a vital component in the new market economy.
• C) A corporation enjoyed special privileges and powers granted in a charter from the government.
• D) Corporations were able to raise far more capital than the traditional forms of enterprise.
• E) Many Americans distrusted corporate charters as a form of government granted special privilege.

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Definitions:

COV

Coefficient of Variation, a standardized measure of the dispersion of a probability distribution or frequency distribution.

Bivariate Distribution

A probability distribution describing two random variables and how their probabilities are distributed over different ranges of values.

Variance

A statistical measurement of the spread between numbers in a data set, indicating how far each number in the set is from the mean.

Covariance

A measure that indicates the extent to which two variables change together, indicating the direction of their linear relationship.