Which of the Following Is True of a Corporation

question 108

Multiple Choice

Which of the following is true of a corporation?

• A)A corporation can be organized publicly,but it cannot be organized privately.
• B)A corporation has to pay income taxes on its business earnings.
• C)A corporation has a limited life.
• D)The stockholders of a corporation have unlimited liabilities for the corporation's debts.

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not reduce their availability to others.

Nonpaying Consumers

Individuals who consume a product or service without directly contributing to its cost, often in the context of public goods.

Government

The organization or system through which a community or society is governed, often responsible for creating and enforcing laws.

Market Failure

A scenario where goods and services distributed by an unrestricted market fail to achieve efficiency, frequently making a case for governmental involvement.