A Business Organized as a Corporation

question 20

Multiple Choice

A business organized as a corporation

• A)is not a separate legal entity in most states.
• B)requires that stockholders be personally liable for the debts of the business.
• C)is owned by its stockholders.
• D)has tax advantages over a proprietorship or partnership.

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Definitions:

Binding

A legal agreement or contract that is enforceable in a court of law, obligating the parties to adhere to the terms.

Written

Pertaining to information or agreements expressed in written form as opposed to being verbal or implied.

Part Performance

An equitable doctrine allowing a court to enforce an oral contract, despite statutory requirements for it to be in writing, based on actions taken in reliance on the contract.

Land

The surface of the earth, extending downward to the center and upward indefinitely into the airspace, including natural resources and physical features.