Which of the Following Statements About Professional Corporations Is False

question 22

Multiple Choice

Which of the following statements about professional corporations is false?

• A)A professional corporation is formed only by a filing with the secretary of state.
• B)A professional corporation is managed by a board of directors,unless a statute provides otherwise.
• C)A professional corporation's shareholders have personal liability for the obligations of the professional corporation.
• D)A professional corporation's rigid management structure makes it inappropriate for some smaller professional practices.

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Definitions:

Frederick Douglass

An African American social reformer, abolitionist, orator, writer, and statesman who escaped from slavery and became a leader of the abolitionist movement.

Historical Significance

The importance attributed to an event, person, or place based on its impact on history or influence on future developments.

Slave Culture

The distinct social, cultural, and familial practices developed by enslaved African Americans in the United States, forming communities and resilience within the oppressive framework of slavery.

African Heritage

The customs, traditions, and cultural influences tracing back to the African continent, preserved among people of African descent worldwide.