Which of the Following Is Not True of a Corporation

question 150

Multiple Choice

Which of the following is not true of a corporation?

• A)It may buy, own, and sell property.
• B)It may sue and be sued.
• C)The acts of its owners bind the corporation.
• D)It may enter into binding legal contracts in its own name.

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Definitions:

Creditor's Name

The name of an individual or entity to whom money is owed or who has provided credit to another party.

Debtor's Name

The legal name of an individual or entity that owes money to a creditor or lender.

Unsecured Creditor

A lender or creditor that extends credit without obtaining specific collateral, ranking below secured creditors in the event of a bankruptcy.

Perfect

To bring something to a state of completeness or flawlessness; in legal and financial contexts, to finalize or make an action legally binding.