Which of the Following Statements Is a Defining Feature of a Corporation

question 16

Multiple Choice

Which of the following statements is a defining feature of a corporation?

• A)The owners of a corporation face unlimited liability on debts.
• B)A corporation owns and operates units in foreign countries.
• C)A corporation is created by a verbal agreement.
• D)A corporation that is based on a verbal agreement is also recognized by State law.
• E)A corporation has a legal identity that is separate from that of its owners.

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Definitions:

Restrict Competition

Legal or business strategies implemented to limit competition within a market, often scrutinized for fairness under competition law.

Void

Refers to a contract or legal agreement that lacks validity and is therefore unenforceable by law.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the parties involved to be enforceable.

Unenforceable

A term used to describe a contract or clause that cannot be legally enforced or compelled in a court of law.