Which of the Following Is a Characteristic of a Corporation

question 128

Multiple Choice

Which of the following is a characteristic of a corporation?

• A)A corporation is owned by stockholders.
• B)Lenders of a corporation do not have the right to claim the corporation's assets to satisfy their obligations.
• C)All shares of a corporation must be held by a single individual.
• D)Each stockholder has the authority to commit the corporation to a binding contract through his actions.

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Definitions:

Transnational Strategy

A strategic approach used by multinational corporations that seeks to achieve global efficiency, local responsiveness, and worldwide learning, leveraging global integration and local adaptation.

Scale Economies

Economic efficiencies that arise due to the increased output or size of an operation, leading to a reduction in average costs.

World Car

A term used to describe a model of car designed to meet the needs and preferences of consumers in multiple countries or regions.

Multidomestic Corporation

A company that operates in multiple countries, adapting its products and services to accommodate local preferences and legal requirements.