Which of the Following Is True of Companies? All Companies

question 25

Multiple Choice

Which of the following is true of companies? All companies:

• A) are limited liability companies.
• B) are separate legal entities.
• C) have a limited life.
• D) are bound by the contracts signed by shareholders.

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Definitions:

Downward Communication

The transmission of messages from higher to lower levels in an organization.

Lower Level

Refers to a position or status that is considered to be of lesser importance or rank within a hierarchy or structure.

Network of Contacts

A group of acquaintances, professionals, and colleagues that an individual can consult, cooperate with, or seek favors from in professional matters.

Formal Channels

Official, recognized pathways for communication or procedures within an organization, often documented and established by policy.