Under the Corporate Form of Business Organization

question 100

Multiple Choice

Under the corporate form of business organization

• A) a shareholder is personally liable for the debts of the corporation.
• B) a shareholder's acts can bind the corporation even though he/she has not been appointed as an agent of the corporation.
• C) the corporation's life is continuous.
• D) shareholders wishing to sell their shares must get the approval of other shareholders.

---

Definitions:

Reciprocity Principle

This is sometimes called the reciprocity norm, or ‘the law of doing unto others what they do to you’. It can refer to an attempt to gain compliance by first doing someone a favour, or to mutual aggression, or to mutual attraction.

Self-Disclosure

The act of revealing personal or private information about oneself to others, which can facilitate intimacy and trust in relationships.

Intimate Knowledge

Deep, often personal understanding of a subject or another individual.

Pre-Operative

Referring to the period or phase before a surgical procedure.