Which of the Following Statements Is TRUE? the Scale of a Corporation

question 42

Multiple Choice

Which of the following statements is TRUE? The scale of a corporation makes a difference to how the rules of corporate law operate because

• A)large and small corporations are incorporated under different statutes.
• B)only large corporations can carry on business in more than one jurisdiction.
• C)small corporations are taxed at different rates than large corporations.
• D)large corporations are better able to bear the risk of unauthorized liabilities than small corporations.
• E)in large corporations, the separation between management and shareholders makes it more difficult for shareholders to exercise control over management and to align the interests of management with those of shareholders.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Output

Refers to the total quantity of goods or services produced by an individual, company, or economy.

Expand

The process of increasing the scale, scope, or reach of an operation, business, or system, often aiming for growth or diversification.