The Legal "Life" of a Corporation Is

question 48

Multiple Choice

The legal "life" of a corporation is:

• A) coincidental with that of its CEO.
• B) equal to the life of its board of directors.
• C) permanent, as long as shareholders don't change.
• D) permanent, regardless of current ownership.

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Definitions:

Discontinued Operations

Parts of a company's core business or product lines that have been disposed of or shut down, no longer contributing to ongoing financial results.

Income Statement

A financial document outlining a company's revenues, expenses, and profits over a specified period.

Net Of Taxes

The amount remaining after all tax obligations have been deducted from the gross amount.

Multiple-Step Income Statements

A detailed financial report that separates operating revenues and expenses from non-operating ones to calculate net income.