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 Benefit

The extra advantage gained by using an additional unit of a product or service.

Producing

The act or process of creating goods or services by combining labor, materials, and technology.

Fifth Sweatshirt

Additional unit or item, indicative of a point in consumption where assessing marginal utility or other economic factors becomes relevant.

Ability-to-pay

A principle in taxation that states taxes should be levied on individuals or entities based on their ability to pay, which is often measured by income or wealth.