Which of the Following Statements Is True of Corporations

question 40

Multiple Choice

Which of the following statements is true of corporations?

• A) Corporations do not have to pay income taxes on their profits.
• B) In comparison with partnerships, corporations are more costly to form.
• C) A corporation's organizational structure changes whenever a shareholder sells his or her stock.
• D) In comparison with proprietorships, corporations are easier to form.
• E) The law treats a corporation's existence in tandem with its owners' status as shareholders.

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Definitions:

Accommodation

In psychology, a cognitive process that adjusts mental schemes to incorporate new information; in eyesight, the process by which the eye's lens changes shape to focus on objects at various distances.

Mirror Neurons

A type of brain cell that fires both when an individual acts and when the individual observes the same action performed by another, playing a role in learning and empathy.

Activated

Made active or operational; also refers to the process of a molecule being converted into a reactive form.

Imitation

The act of copying or mimicking the behaviors, actions, or appearances of someone else.