Which of the Following Is True Regarding Corporations

question 26

Multiple Choice

Which of the following is true regarding corporations?

• A) A corporation is not a separate legal entity.
• B) A corporation may not be sued.
• C) A corporation is created according to federal law.
• D) Shareholders may typically be held liable for debts of the corporation.
• E) The corporation must pay taxes on profits, and shareholders must pay taxes on dividends they receive from the corporation.

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Definitions:

Census Family

A concept used in demography to describe a household unit consisting of a married couple or common-law partners, with or without children, or a lone parent with at least one child.

Family Life Cycle

A series of stages through which a family may progress over time, including changes in family structure and roles as members age or events such as marriage or childbirth occur.

Family Values

Cultural, social, or religious beliefs that emphasize the importance of the family unit.

Boomerang Kids

Adult children who return to live with their parents after having lived independently, often due to economic constraints, personal choice, or transitioning life stages.