Which One of the Following Statements Is Correct Concerning Corporations

question 37

Multiple Choice

Which one of the following statements is correct concerning corporations?

• A)The largest firms are usually corporations.
• B)The majority of firms are corporations.
• C)The shareholders are usually the managers of a corporation.
• D)The ability of a corporation to raise capital is quite limited.
• E)The income of a corporation is taxed as personal income of the shareholders.

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Definitions:

Net Income

The amount of earnings remaining after all expenses, including taxes and interest, have been deducted from total revenues.

Ending Inventory

The total value of all goods available for sale at the end of an accounting period, calculated to evaluate stock levels and assess cost of goods sold.

Consignor

The party in a consignment agreement that provides goods to another party (consignee) to sell on their behalf, retaining ownership until the goods are sold.

Consignee

The individual or entity to whom goods are shipped and who is responsible for receiving the shipment and completing any customs paperwork.