Which of the Following Statements About the Operation of a Corporation

question 19

Multiple Choice

Which of the following statements about the operation of a corporation is correct?

• A) A corporation receives its charter from a state government.
• B) A corporate charter automatically expires in 99 years and must be renewed if the corporation wants to remain in business.
• C) Owners of a corporation have unlimited liability for any claims against their company.
• D) A corporation tends to be much easier to set up than a sole proprietorship or partnership.

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Definitions:

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions.

Codetermination

A practice where workers have a role in the management of companies, often through representation on corporate boards.

Social Partnership

A form of governance in which employers, unions, and sometimes government agencies collaborate to make major economic and labor decisions.

Aggregate Economy

The total economic output of a country, measured through indicators such as GDP, which encompasses all sectors and economic activities.