Legislators Created a Form of Business Called Corporations Because They

question 78

Multiple Choice

Legislators created a form of business called corporations because they thought that businesses could be more efficient in raising the capital necessary for producing goods,services,jobs,and wealth if:

• A)multiple owners were involved in the strategic decision-making process of the firm.
• B)there was transparency among all stakeholders.
• C)firms had the obligation to justify bad decisions.
• D)investors were protected from undue personal risks.

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Definitions:

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, reflecting reputation, brand, and other value not captured by physical assets.

Blue Sky

Pertaining to laws that regulate the offering and sale of securities to protect the public from fraud.

Canadian Corporations

Canadian Corporations are business entities registered and operating under the legal frameworks and regulations of Canada.

Corporate Income Tax

A tax imposed on companies' profits by the government.