Which of the Following Is True Regarding the Corporate Form

question 4

Multiple Choice

Which of the following is true regarding the corporate form of ownership?

• A)Generally has the greatest ability to accumulate capital.
• B)Most complex form of ownership.
• C)Separate legal entity in the eyes of the law.
• D)All of the above

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Definitions:

Plant and Equipment

Physical assets used in the operation of a business, including machinery, buildings, and vehicles.

Current Ratio

A financial metric that measures a company's ability to cover its short-term obligations with its short-term assets, indicating liquidity.

Stockholders' Equity

The portion of a company's assets that belongs to its shareholders after liabilities have been subtracted.

Current Assets

Current assets are short-term, liquid assets that a company owns and are expected to be converted into cash, sold, or consumed within one year or within a business's operating cycle, whichever is longer.