Corporate Ownership Is a Very Popular Type of Ownership in the United

question 92

Multiple Choice

Corporate ownership is a very popular type of ownership in the United States. Which of the following is a major reason that corporate ownership is popular?

• A)Stockholders have limited liability for the debts of the corporation.
• B)Most corporations are small or medium-sized.
• C)The life of a corporation is limited by the death of the owner.
• D)A corporation is usually managed by the owners.

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Definitions:

Functional Currency

The main form of money used in the main economic setting where a business functions, as reported in its financial documents.

Total Liabilities and Equity

The sum of all current and long-term liabilities along with owners' equity, representing the sources of a company's assets.

Exchange Rates

The price of one country's currency in terms of another's, influencing international trade and investment.

Amortization Expense

The systematic allocation of the cost of an intangible asset over its useful life.