Which Statement Is True Regarding Corporations

question 74

Multiple Choice

Which statement is true regarding corporations?

• A) A corporation is not a separate legal entity.
• B) A corporation may not be sued.
• C) A corporation is created according to federal law.
• D) Shareholders may typically be held liable for debts of the corporation.
• E) The corporation must pay taxes on profits, and shareholders must pay taxes on dividends they receive from the corporation.

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Definitions:

Monetary Policy

The process by which the central bank or monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and trust in the currency.

Restrictive Policy

Regulations or policies implemented to limit or control certain activities or behaviors.

Expansionary Policy

Economic policies implemented by a government to stimulate growth in a sluggish economy, typically by increasing money supply or reducing taxes.

Economic Stability

Economic stability refers to a state where an economy experiences constant growth, low inflation, and low unemployment, reflecting a balanced economic environment.