As an Artificial Person, a _________ Can Legally Engage in Virtually

question 46

Multiple Choice

As an artificial person, a _________ can legally engage in virtually any business activity a natural person can pursue, including owning property, entering into binding contracts, and initiating legal actions.

• A)partnership
• B)corporation
• C)limited liability company
• D)sole proprietorship

---

Definitions:

Equity Investments

Equity investments involve purchasing shares of stock in a company, representing partial ownership and the potential to earn returns through dividends and capital appreciation.

Amortized Cost

The initial investment cost adjusted for amortization or depreciation, representing the current book value of a financial asset or liability.

Held-to-Maturity Investments

Debt securities that a company intends and is able to hold until maturity, recorded on the balance sheet at acquisition cost adjusted for amortization.

Held-for-Collection Investments

Investments acquired with the intention of holding them to collect their contractual cash flows, rather than for selling in the near term.