Which of the Following Statements Is Correct

question 97

Multiple Choice

Which of the following statements is correct?

• A)A hostile takeover is the primary method of transferring ownership interest in a corporation.
• B)The corporation is a legal entity created by the state and is a direct extension of the legal status of its owners and managers, that is, the owners and managers are the corporation.
• C)Unlimited liability and limited life are two key advantages of the corporate form over other forms of business organization.
• D)In part due to limited liability and ease of ownership transfer, corporations have less trouble raising money in financial markets than other organizational forms.
• E)Although stockholders of the corporation are insulated by limited legal liability, the legal status of the corporation does not protect the firm's managers in the same way.

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Definitions:

Excess Supply

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price, often leading to a price decrease.

Excess Demand

A situation in which the demand for a product or service surpasses its supply in a market, often leading to price increases.

Market Equilibrium

A situation where the quantity of a good or service supplied equals the quantity demanded at a specific price level.

Excess Demand

A scenario in which the current price of a product or service leads to a demand that surpasses its available supply.