Because the Corporation Is a Legal Entity, One of Its

question 28

Multiple Choice

Because the corporation is a legal entity, one of its responsibilities is to

• A) have its accounting records audited.
• B) sell stock.
• C) pay dividends.
• D) file annual tax returns.

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Definitions:

Officer Of The Corporation

A high-level management official within a corporation, usually appointed by the board of directors, responsible for day-to-day operations and implementing corporate policies.

Shareholder's Loan

Money lent to a corporation by its shareholders, which is sometimes considered a part of the equity of the business.

Annual Returns

Financial documents that corporations must file yearly, detailing their operational performance, financial status, and other critical information.

Bankruptcy

A legal process intended for individuals or entities that are unable to repay their outstanding debts, allowing them to be absolved through various means.