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:

Group Polarization

The habit of groups to make choices that exceed the initial leanings of its members in terms of extremeness.

Terrorist Mentality

A psychological framework that motivates individuals to engage in or support acts of terrorism, often driven by ideological, political, or religious convictions.

Group Interaction

The dynamics and processes that occur when individuals come together to form a group, influencing each other's behaviors and attitudes.

Deindividuation

A psychological state where an individual loses their self-awareness and sense of individuality, often leading to uncharacteristic behavior, usually as a result of being in a large group.