Which of the Following Is True About a Corporation

question 142

Multiple Choice

Which of the following is true about a corporation?

• A) It combines the advantages of the other forms-sole proprietorship, partnership, and limited liability corporation.
• B) Only a for-profit business can be registered as a corporation.
• C) It exists separately from its owners.
• D) For tax purposes, it functions as a partnership.
• E) For liability purposes, it functions as a partnership.

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Definitions:

Dormant Minerals Statute

Legislation that allows for the reversion of mineral rights to the surface owner if those rights have not been exercised or leased for a certain period.

Surface Owner

An individual or entity that holds the rights to the surface estate of a piece of land, which may include the power to use and develop the land above ground.

Mineral Rights

The legal rights or ownership of natural resources located beneath the surface of a property, such as oil, gas, and minerals.

Fixture

An article of personal property physically attached to real property in such a way that an interest arises in it under real estate law.