Which of the Following Is Not True of a Corporation

question 98

Multiple Choice

Which of the following is not true of a corporation?

• A) It may enter into binding legal contracts in its own name.
• B) It may sue and be sued.
• C) The acts of its owners bind the corporation.
• D) It may buy, own, and sell property.

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Definitions:

Interest Dates

The specific dates on which interest payments on a debt or investment are made to bondholders or lenders.

Accrued Interest

Interest that has been earned but not yet received or recorded as of a specific date, often related to bonds or loans.

Investment in Bonds

Purchasing debt securities issued by corporations or governments to earn interest income and potentially benefit from bond price appreciations.

Available-for-Sale Securities

Financial assets that are neither classified as held-for-trading nor held-to-maturity, and whose value is subject to change; gains and losses are typically reported in other comprehensive income.