The Fact That a Corporation Is a Separate Legal Entity

question 46

True/False

The fact that a corporation is a separate legal entity allows it to be fully shielded from compliance requirements with laws of general application.

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing for adjustment to changes.

Fixed

In economics, pertains to costs that do not change with the level of output or production, such as rent, salaries, and insurance.

Variable

A quantity that can take on more than one value.

Short-Run Average Total Cost Curve

A graphical representation that shows the average total cost of producing different levels of output in the short run, when at least one input is fixed.