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:

Domestic Investment

Domestic investment refers to the total spending on capital within a country that is used for the production of goods and services.

Loanable Funds

The money available for borrowing in the financial markets, determined by savings and demands for loans.

Foreign-Currency Exchange

The process of converting one currency into another currency, a key element in international trade and investment.

Tax Credit

is an amount by which taxpayers can reduce the taxes they owe to the government, directly offsetting their tax liability rather than reducing taxable income.