Which of the Following Statements Is True of a Corporation

question 125

Multiple Choice

Which of the following statements is true of a corporation?

• A)The liabilities of the corporation can be paid by the personal assets of the shareholders.
• B)Shares of stock cannot be readily bought and sold by investors on the open market.
• C)Shareholders are 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:

Resistance To Change

The reluctance or refusal to accept or adapt to changes within the organizational environment or personal life.

Unfounded Fears

Fears that lack a solid or rational basis, often stemming from misconceptions or misinformation.

Participation And Involvement

The act of taking part actively and being involved in activities or discussions, contributing to decision-making processes.

Organizational Diagnosis

Organizational diagnosis involves analyzing an organization's current state to identify strengths, weaknesses, and areas for improvement, often leading to strategic change.