The Distinguishing Feature of a Corporation Is That

question 12

Multiple Choice

The distinguishing feature of a corporation is that:

• A)their is no legal difference between the corporation and its owners.
• B)it is a legally defined,artificial being,separate from its owners.
• C)it spreads liability for its corporate obligations to all shareholders.
• D)provides limited liability only to small shareholders.

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Definitions:

Contribution Format

A layout of the income statement that distinguishes between fixed and variable expenses to emphasize the contribution margin.

High-low Method

A technique in accounting used to estimate variable and fixed cost components of a cost by analyzing the highest and lowest activity levels.

Monthly Fixed

Regular, consistent expenses that a business incurs each month regardless of its operational volume, such as rent or salaries.

Lubrication Cost

Expenses associated with the lubrication of machinery and equipment in a manufacturing or production process.