Large-Scale Organizations That Have Their Own Legal Powers as an Organization

question 60

Multiple Choice

Large-scale organizations that have their own legal powers as an organization separate from the individual owners, such as the ability to enter into contracts and buy and sell property, are termed_______________ .

• A) corporations
• B) economic concentrations
• C) conglomerates
• D) interlocking directorates

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Definitions:

Organizational Structure

The system that outlines how certain activities are directed in order to achieve the goals of an organization, including the roles, responsibilities, and authority of employees within the organization.

Consolidated Financial Statements

Financial statements that show the financial results and position of a parent entity and its subsidiaries as if the group were a single entity.

Parent Entity

A business entity that possesses a majority stake in one or more subsidiary companies.

Reporting Entity

is an entity for which there are users who rely on its financial statements to make economic decisions.