Which of the Following Statements About the Corporate Form of Business

question 68

Multiple Choice

Which of the following statements about the corporate form of business organization is correct?

• A)A corporation has the legal authority to act like a person when conducting business.
• B)In the United States, corporations generate a lower percentage of total annual sales than either partnerships or proprietorships.
• C)Corporations generally are smaller than either partnerships or proprietorships.
• D)One of the most important features of the corporate form of business organization is that stockholders have unlimited liability.
• E)Corporations can operate under different degrees of formality, ranging from informal, oral understandings to formal agreements filed with the secretary of the state in which the corporations do business.

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Definitions:

In- and Out-group Process

The psychological dynamic that differentiates between members within a group (in-group) and those outside it (out-group), often leading to biases in favor of one's own group.

Organizational Commitment

The level of loyalty and dedication an individual has towards their organization, often reflected in their willingness to invest effort and maintain membership.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees, often used as an indicator of workplace satisfaction and organizational stability.

Out-group Members

Individuals in a group or team who do not identify or are not identified as part of the ingroup, often feeling marginalized or excluded from core group activities.