A Business Organized as a Corporation

question 20

Multiple Choice

A business organized as a corporation

• A)is not a separate legal entity in most states.
• B)requires that stockholders be personally liable for the debts of the business.
• C)is owned by its stockholders.
• D)has tax advantages over a proprietorship or partnership.

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Definitions:

Demand Curve

A chart that demonstrates how the demand for a product changes in response to its price during a particular period.

Supply

The overall quantity of a particular product or service accessible to buyers.

Demand Curve

A depiction in graphic form that illustrates the link between the cost of a merchandise and the volume of demand from buyers.

Equilibrium Quantity

The quantity of goods or services at which supply equals demand, and there is no tendency for change in the price or quantity.