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:

Controlled Substance

a drug or chemical whose manufacture, possession, or use is regulated by government due to its potential for abuse or addiction.

Vasodilators

Medications or substances that relax and expand blood vessels, improving blood flow and reducing blood pressure.

Blood Pressure

Measurement of the force exerted by circulating blood upon the walls of blood vessels, usually measured in millimeters of mercury (mmHg).

Circulation

The movement of fluid in a loop or system, often referring to the movement of blood through the heart and blood vessels in the body.