Which of the Following Statements Describes the Corporate Characteristic of Easy

question 76

Multiple Choice

Which of the following statements describes the corporate characteristic of easy transfer of corporate ownership?

• 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:

Wealth

The abundance of valuable resources or material possessions, or the control of such assets, which gives an individual or group economic power.

Income

The money received, usually on a regular basis, for work or through investments.

Caste System

An almost pure ascription-based stratification system in which occupation and marriage partners are assigned on the basis of caste membership.

Functional Theory

A theoretical perspective that analyzes society in terms of the functions performed by its different components or institutions.