Which of the Following Is an Incorrect Statement

question 65

Multiple Choice

Which of the following is an incorrect statement?

• A) A corporation may file suit in its own name without the principals filing suit.
• B) A corporation may form a contract in its own name without the principals guaranteeing the contract.
• C) A corporation can be sued without the principals being sued.
• D) A corporation may not incur obligations separate from those of its principals.

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Definitions:

U.S. GAAP

Generally Accepted Accounting Principles in the United States, which constitute a common set of accounting rules and standards for financial reporting.

Valuation Models

Frameworks used to determine the present value of an asset or company based on assumptions about future revenue streams, growth rates, and discount rates.

Discontinued Operations

Components of a business that have been sold or otherwise disposed of, or will be disposed of, which are reported separately in financial statements for clarity on continuing operations.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a specific period of time, highlighting the company's financial performance.