Which of the Following Statements About the Corporate Form of Business

question 39

Multiple Choice

Which of the following statements about the corporate form of business organization is correct?

• A) A corporation has the legal authority to act like a person when conducting business.
• B) In the United States, corporations generate a lower percentage of total annual sales than either partnerships or proprietorships.
• C) Corporations generally are smaller than either partnerships or proprietorships.
• D) One of the most important features of the corporate form of business organization is that stockholders have unlimited liability.
• E) Corporations can operate under different degrees of formality, ranging from informal, oral understandings to formal agreements filed with the secretary of the state in which the corporations does business.

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Definitions:

United States

A country in North America founded in 1776, comprised of 50 states, known for its vast size and diversity.

Great Britain

A country located off the northwestern coast of mainland Europe comprising England, Scotland, Wales, and Northern Ireland, known for its influential role in global politics, economics, and culture.

Economic Interests

Concerns or investments that involve the financial well-being of individuals, groups, or nations, including trade, resources, and markets.

Expansionist Foreign Policy

A strategy by a country to increase its power and territory through acquisition or diplomatic efforts.