Which One of the Following Statements Is Correct

question 4

Multiple Choice

Which one of the following statements is correct?

• A)According to the real seat principle, the law applying to the firm is that of its country of incorporation.
• B)The incorporation principle makes it more difficult for a firm to move than the real seat principle.
• C)According to the incorporation principle, the law applying to the firm is that of its country of incorporation.
• D)None of the above.

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Definitions:

Crop Insurance

A risk management tool that protects agricultural producers against loss of their crops due to natural disasters, such as flood, hail, drought, or loss in revenue due to declines in the prices of agricultural commodities.

Price Support

A government intervention mechanism to maintain the price of a commodity at a certain level by buying excess supply or offering subsidies.

Price-Support Program

Government interventions to maintain the market price of a commodity or product above its equilibrium level to support the income of producers.

Freedom to Farm Act

A U.S. law enacted in 1996 aimed at allowing farmers the flexibility to plant what they choose, sell to whom they choose, and manage their business as they see fit, significantly reducing federal government involvement in farming decisions.