Which of the Following Is a Consequence of a Corporation

question 47

Multiple Choice

Which of the following is a consequence of a corporation being a separate entity from its owners?​

• A)The owners are not personally responsible for the obligations of a company.
• B)The articles of incorporation are not required to set up a corporation.
• C)A corporation cannot enter into binding contracts in its name.
• D)The death or withdrawal of an owner dissolves a corporation.

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Definitions:

NAFTA

The North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that established a trilateral trade bloc in North America.

GATT

The General Agreement on Tariffs and Trade, a legal agreement between countries to promote international trade by reducing or eliminating trade barriers such as tariffs and quotas.

FTAA

The Free Trade Area of the Americas, a proposed agreement to eliminate or reduce trade barriers among all countries in the Americas, excluding Cuba.

Knowledge

The facts, information, and skills acquired through experience or education; the theoretical or practical understanding of a subject.