Which of the Following Is True of a Corporation

question 19

Multiple Choice

Which of the following is true of a corporation?

• A)It is an artificial being, existing only in contemplation of law.
• B)Shareholders of a corporation represent the corporation as agents.
• C)Stockholders perform all the administrative functions of the corporation.
• D)Stockholders directly control the day to day activities of a corporation.

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Definitions:

Gain Contingency

A potential financial gain that may occur in the future, dependent on certain events or conditions being met.

Binding Agreement

A contract or agreement that is legally enforceable in a court of law, implying that all parties have agreed to the terms and conditions.