Which of the Following Statements Is True

question 70

Multiple Choice

Which of the following statements is true?

• A)A corporation and its owners are not legally separated.
• B)The owners of a corporation are legally liable for its debts or obligations to creditors beyond their ownership investment.
• C)A corporation does not have the responsibility to follow all laws of the state.
• D)A corporation cannot die in the normal human sense of the word.
• E)A corporation has a moral conscience.

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Definitions:

Reporting Basis

Refers to the underlying principles and guidelines used for preparing financial statements, often based on accounting standards like GAAP or IFRS.

Comparative Importance

A concept used to assess and prioritize items or issues in relation to one another based on their significance or impact.

Financial Reports

Documents that provide an overview of the financial condition of a company, including balance sheets, income statements, and cash flow statements.

Governmental Units

Entities responsible for the governance and administration of a particular area or community at local, regional, or national levels.