Which of the Following Statements About Corporations Is True

question 54

Multiple Choice

Which of the following statements about corporations is true?

• A)A promoter files articles of incorporation with the state government to create a corporation.
• B)When a corporation's liabilities exceed its assets,its creditors can reach the personal assets of the shareholders.
• C)A corporation need not establish books of accounts.
• D)When an employee or director commits a tort or crime while conducting corporate business,the corporation is not liable for the consequences.

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Definitions:

Significance Level

A statistical measure that determines the threshold of rejecting the null hypothesis, typically represented by alpha (α), such as 0.05 (5%).

Independent Variable

A variable in a statistical model that is manipulated to determine its effect on the dependent variable.

Linear Term

A component of an equation characterized by a variable raised to the first power, indicating a direct proportionality relationship.

Significance Level

The possibility of inaccurately negating the null hypothesis in a statistical test, often exemplified by alpha.