Which of the Following Explains the Term "Lack of Mutual

question 94

Multiple Choice

Which of the following explains the term "lack of mutual agency" of a corporation?

• A)The liabilities of the corporation cannot be extended to the personal assets of the shareholder.
• B)Shares of stock can be readily bought and sold by investors on the open market.
• C)Shareholders are not authorized to sign contracts or make business commitments on behalf of the corporation.
• D)Corporations pay income tax on corporate earnings, and shareholders pay personal income tax on corporate dividends and gains from sale of stock.

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Definitions:

Backcountry Farmers

Agriculturalists living in rural, often remote areas of the country, historically known for their self-reliance and small-scale farming.

Subsistence Agriculture

Subsistence Agriculture is a type of farming in which the farmers focus on growing enough food to feed themselves and their families, with little to no surplus for trade.

Agricultural Diversification

The practice of growing a variety of crops or engaging in different agricultural activities to reduce risk and increase sustainability in farming.

Crop-Lien System

A credit system widely used in the Southern United States after the Civil War, where farmers used their crops as collateral for loans, leading to cycles of debt and poverty.