Which of the Following Statements Describes the Corporate Characteristic Termed

question 148

Multiple Choice

Which of the following statements describes the corporate characteristic termed limited liability?

• 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:

Unstructured Format

Data or information that does not follow a predefined model, making it more complex to analyze and interpret.

Organization's Memory

Refers to the accumulated knowledge, data, and information that an organization possesses, which can be used for decision-making, strategy, and maintaining a competitive edge.

Organizational Business Processes

The collection of structured activities or tasks that produce a specific service or product for an organization's customers.

Database Management

The administration of databases, ensuring their optimal organization, data integrity, performance, and security.