Which of the Following Statements Is True Regarding a Corporation

question 49

Multiple Choice

Which of the following statements is true regarding a corporation?

• A) The board of directors is the center of management authority for the corporation.
• B) The ownership of the corporation and the management of the corporation are in the same hands.
• C) Corporations can exist without a statute permitting them.
• D) The amount of funds that can be gathered by a corporation is limited to the amount of money it can gather from friends and family.

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Definitions:

Definiteness

A characteristic of a contract that requires its terms to be clear enough for the parties involved to understand their obligations and rights.

Reasonable Time

An amount of time that is fair and appropriate under the circumstances to perform a legal duty or obligation.

Promissory Estoppel

A legal principle that prevents a promisor from going back on a promise when the promisee reasonably relies on that promise to their detriment.

Revocations

The act of officially cancelling or withdrawing something, such as a license, permission, or legal right.