Which of the Following Statements Regarding Companies Is Incorrect

question 54

Multiple Choice

Which of the following statements regarding companies is incorrect?

• A) A company is a discrete legal entity.
• B) Since shares represent ownership in a company, ownership cannot be readily transferred to new owners.
• C) A company has a potentially unlimited life.
• D) The shareholders' liability is limited.

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Definitions:

Implantation

The process by which a fertilized egg attaches itself to the lining of the uterus, marking the beginning of pregnancy.

Fertilization

The process of a sperm cell uniting with an egg cell to form a zygote, initiating embryonic development.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, representing the earliest stage of embryonic development.

Secondary Oocyte

A cell that originates from the division of an oocyte during meiosis, capable of being fertilized or developing further upon fertilization.