Which of the Following Statements Is NOT True of a Corporation

question 71

Multiple Choice

Which of the following statements is NOT true of a corporation?

• A)It can enter into contracts.
• B)It is an entity separate from the individuals who own it.
• C)It can incur debt that is an obligation of the corporation but not of its individual owners.
• D)It has the right to sue and be sued.
• E)It is legally obliged to distribute all profits to shareholders.

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Definitions:

Africa

The world's second-largest and second-most populous continent, rich in cultural and geographical diversity.

Disenfranchise Southern Blacks

Historical efforts and practices, especially post-U.S. Civil War, geared towards preventing African Americans in the Southern states from voting and exercising their full rights.

Mississippi

A state in the southern region of the United States, known for its rich history, especially regarding the Civil Rights Movement and profound cultural contributions like blues music.

Readjuster Party

A political movement in Virginia during the late 19th century, advocating for the reorganization of the state's debt and expanded funding for public services, including education for African Americans.