Which of the Following Statements Is True of a Corporation

question 102

Multiple Choice

Which of the following statements is true of a corporation?

• A)The liabilities of a corporation can be paid by the personal assets of the shareholders.
• B)Corporate 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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