Which of the Following If True Regarding Powers State Incorporation

question 4

Multiple Choice

Which of the following if true regarding powers state incorporation statutes typically grant to corporations?

• A) State incorporation statutes give corporations the power to make charitable contributions.
• B) State incorporation statutes prohibit corporations from loaning money because that is within the realm of state banks recognized by the state banking regulatory authority.
• C) State incorporation statutes give corporations existence for up to 100 years.
• D) State incorporation statutes expressly state the powers granted to corporations thereby negating the existence of implied powers.
• E) State incorporation statutes generally expressly give corporations only the broad authority to operate within the law to the benefit of stockholders resulting in most actions of corporations arising from implied powers.

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Definitions:

Economic Profits

The surplus achieved when total revenue exceeds the total costs, including both explicit and implicit costs.

Accounting Profits

The difference between total revenue and explicit costs, representing the net income of a business according to standard accounting practices.

Competitive Economy

An economic system where businesses operate in a free market, competing for consumers on price, quality, and service.

Barriers to Entry

Factors that prevent or hinder new competitors from easily entering an industry or market, such as high startup costs, strict regulations, or control of key resources.