Which of the Following Is Not a Characteristic That Distinguishes

question 14

Multiple Choice

Which of the following is not a characteristic that distinguishes corporations from proprietorships and partnerships?

• A) Corporations are separate legal entities apart from the owners.
• B) Corporate earnings are subject to double taxation.
• C) Corporations have mutual agency.
• D) Corporations have continuous lives regardless of changes in ownership.

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Definitions:

Induced Consumption

The portion of spending by households that increases with their income, demonstrating how consumer spending is influenced by changes in income.

Autonomous C

Consumer spending that does not depend on current income, influenced by factors like confidence and wealth, key for understanding economic fluctuations.

Induced C

Refers to the consumption that varies with income levels; as income increases, so does the consumption level.

Autonomous Consumption

the level of consumption that occurs when income is zero, representing the expenditures necessary to meet basic needs.