Which of the Following Statements Is CORRECT

question 23

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.

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Definitions:

Experienced

Having knowledge or skill in a particular area or field obtained through involvement in or exposure to it over a period.

Observed

Observed refers to having seen or noticed something, often implying careful attention to details.

Feasibility Reports

Detailed assessments that evaluate the practicality and viability of a proposed project or system, analyzing various aspects such as economic, technical, legal, and scheduling considerations.

Analyze

The detailed examination of elements or structure of something, typically as a basis for discussion or interpretation.