Which of the Following Is Not True Regarding Corporations

question 70

Multiple Choice

Which of the following is not true regarding corporations?

• A) A corporation is formed with the issuance of a state charter and is governed by state corporation laws.
• B) Corporate shareholders are personally liable for the business obligations of the corporation.
• C) Corporate income is subject to double taxation.
• D) A corporation may be sued.

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Definitions:

Marginal Utility

The additional utility or satisfaction a consumer gains from consuming one more unit of a good or service.

Apples

A common fruit consumed worldwide, often used as an example in economic models and comparisons.

Oranges

A citrus fruit known for its vibrant color and sweet, tangy flavor, often consumed fresh or used in juices.

Marginal Rate

The amount by which a quantity changes with respect to a change in another quantity, often used in the context of taxes or productivity.