Which of the Following Statements Is True About Government Corporations

question 64

Multiple Choice

Which of the following statements is true about government corporations?

• A) Profits from government corporations are distributed as dividends.
• B) Government corporations must pay taxes on profits.
• C) Government corporations do not employee many people.
• D) You can invest in both a private corporation as well as a government corporation.
• E) Government corporations do not usually have any stockholders.

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Definitions:

Legal Value

Consideration or benefit recognized by law as sufficient to form a valid contract or enforceable obligation.

Gross Inadequacy

An extreme lack of sufficiency or competence in performance or provision, often referenced in legal contexts concerning contractual or fiduciary obligations.

Bilateral Contract

A type of contract that involves two parties where each party makes a promise to the other.

Consideration

Something of value (such as an object, money, service, or promise) that is given by a party to induce another to enter into a contract.