Which of the Following Operates in Such a Way That

question 67

Multiple Choice

Which of the following operates in such a way that a corporation is liable, with respect to contractual obligations, to the outsider as opposed to the directors who acted on the corporation's behalf?

• A) doctrine of constructive notice
• B) principles of indemnification
• C) identification principle
• D) principles of agency

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Definitions:

Firm's Existence

Pertains to the existence and operation of a business entity within the market, including its legal and economic activities.

Maturity Stage

A phase in the product life cycle where growth in sales has started to slow down, and the product is established in the market.

Entrepreneurial Firms

Companies focused on innovation, rapid growth, and high risk, often in emerging industries or markets.

Growth

The process of increasing in size, number, value, or strength, often used in contexts of individual development, economic progress, or business expansion.