Which of the Following Statements Is CORRECT

question 21

Multiple Choice

Which of the following statements is CORRECT?

• A) A hostile takeover is the main method of transferring ownership interest in a corporation.
• B) Unlimited liability and limited life are two key advantages of the corporate form over other forms of business organization.
• C) A corporation is a legal entity that is generally created by a state, and it has a life and existence that is separate from the lives of its individual owners and managers.
• D) Limited liability of its stockholders is an advantage of the corporate form of organization, but corporations have more trouble raising money in financial markets because of the complexity of this form of organization.
• E) Although its stockholders are insulated by limited legal liability, the legal status of the corporation does not protect the firm's managers in the same way, i.e., bondholders can sue its managers if the firm defaults on its debt, even if the default is the result of poor economic conditions.

---

Definitions:

Bone Matrix

The intercellular substance of bone tissue, consisting of collagen fibers and ground substance, which provides rigidity and supports bone cells.

Collagen Development

The process by which collagen, a primary structural protein in the body, is synthesized, assembled, and organized into a functional form.

Integumentary System

The integumentary system includes the skin and its appendages (such as hair, scales, feathers, and nails) acting as a barrier to protect the body from the external environment.

Osteoporosis

A condition characterized by weakened bones that are more susceptible to fracture, often due to reduced bone mass and density.