Consider the Following Statements

question 43

Multiple Choice

Consider the following statements:
i.A corporation differs from other forms of business organisation only in that it tends to be larger.
ii.The corporate form of business organisation is destined to fail because 'managers',and not the 'owners',run the business.
iii.The corporate entity ceases on the death or bankruptcy of the individual shareholders.
iv.The stock exchange is important to the corporation only because it provides the institutional framework through which new shares may be sold to the public.
v.Maximisation of shareholder utility is presumed when managers maximise possible profit.
How many of these statements are true and how many are false?

• A) 1 statement is true and 4 are false
• B) 2 statements are true and 3 are false
• C) 3 statements are true and 2 are false
• D) 4 statements are true and 1 is false

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Definitions:

Unconscionable

Refers to an action or decision that is shockingly unfair or unjust, often used in legal contexts to describe contracts or practices.

Express Warranty

A clear and definitive promise or guarantee made by a seller regarding the quality or functionality of a product.

Statute of Limitations

A legal rule determining the furthest limit in time to begin legal procedures after an occurrence.

Statute of Limitations

A regulation specifying the latest allowable date to initiate legal proceedings after a specific event.