Which Statement Does NOT Describe a Characteristic of a Corporation

question 222

Multiple Choice

Which statement does NOT describe a characteristic of a corporation?

• A) Its investors face unlimited liability.
• B) It produces more value of goods and services than any other type of business structure.
• C) It has the ability to issue stock to raise capital.
• D) It usually consists of many owners (in some cases, tens of thousands of owners or more).

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Definitions:

Bureaucratic Culture

An organizational culture characterized by formalized procedures and rules, hierarchy, and a clear division of labor, aimed at increasing efficiency.

Clan Culture

A type of corporate culture that emphasizes consensus, common values, and traditions similar to a family atmosphere.

Entrepreneurial Culture

An organizational environment that fosters innovation, risk-taking, and proactivity in pursuing new business opportunities.

Market Culture

A set of shared attitudes, values, goals, and practices that characterizes an institution or organization focused on competitiveness and achievement.