Which of the Following Is True with Regard to the Characteristics

question 164

Multiple Choice

Which of the following is true with regard to the characteristics of corporations?

• A)The shareholders would be vicariously liable for any damage caused by a employee of the corporation carrying out his or her duties.
• B)The corporation is a separate legal person,but neither can sue nor be sued.
• C)Directors are responsible for the shareholders of the corporation.
• D)Shareholders are liable for the debts and other obligations of the corporation.
• E)A shareholder's liability is limited to the amount he or she paid for the shares.

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Definitions:

Pure Monopolist

A market participant that is the sole seller of a product or service, having significant control over its price.

Marginal Cost

Marginal cost is the additional cost incurred by producing one more unit of a good or service, a critical concept for understanding production decisions.

Output Increment

The increase in output that results from employing an additional unit of input, reflecting the productivity of the input in the production process.

Pure Monopolist

A single seller in a market who has exclusive control over a particular good or service and is the only one to provide that good or service.