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:

Ethics Officer

A professional responsible for fostering a culture of ethical conduct within an organization, including developing policies, training, and advice on ethics and compliance issues.

Ethics Standards

Guidelines or codes designed to set out acceptable behaviors and help individuals make moral decisions in their personal and professional lives, aiming to uphold integrity and honesty.

Disciplinary Action

A process or measure taken by an organization or authority to address and correct inappropriate behavior or violations of policies or rules.

Values Orientation

The emphasis on core principles and morals that guide behavior within an organization or society, impacting decision-making and priorities.