Why Is It Possible for a Corporation to Enter into Contracts,acquire

question 42

Multiple Choice

Why is it possible for a corporation to enter into contracts,acquire assets,incur obligations,and enjoy protection against the seizure of its property?

• A)The number of owners,and hence the spread of risk among these owners,is not limited.
• B)Its owners are liable for any obligations it enters into.
• C)The state in which the corporation is incorporated provides safeguards against any wrongdoing by the corporation.
• D)It is a legally defined,artificial entity that is separate from its owners.

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Definitions:

Virtual Organizations

Are companies that operate primarily online, leveraging technology to enable remote work, collaboration, and service delivery without a traditional physical presence.

Operating Functions

The essential tasks, activities, and responsibilities required for the day-to-day operation of an organization.

Cross-Functional Collaboration

A cooperative effort involving members of different departments or functional areas within an organization, working together towards common goals.

Formalization

The extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated within an organization.